Correlation Between GungHo Online and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Corsair Gaming at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GungHo Online and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and Corsair Gaming, you can compare the effects of market volatilities on GungHo Online and Corsair Gaming and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GungHo Online with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Corsair Gaming.
Diversification Opportunities for GungHo Online and Corsair Gaming
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Corsair is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and GungHo Online is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GungHo Online Entertainment are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of GungHo Online i.e., GungHo Online and Corsair Gaming go up and down completely randomly.
Pair Corralation between GungHo Online and Corsair Gaming
Assuming the 90 days horizon GungHo Online is expected to generate 24.42 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, GungHo Online Entertainment is 1.92 times less risky than Corsair Gaming. It trades about 0.01 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 579.00 in Corsair Gaming on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Corsair Gaming or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Corsair Gaming
Performance |
| Timeline |
| GungHo Online Entert |
| Corsair Gaming |
GungHo Online and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Corsair Gaming
The main advantage of trading using opposite GungHo Online and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Corsair Gaming can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
| Corsair Gaming vs. GOLD ROAD RES | Corsair Gaming vs. Texas Roadhouse | Corsair Gaming vs. BROADSTNET LEADL 00025 | Corsair Gaming vs. Gold Road Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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