Correlation Between GungHo Online and Dupont De
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Dupont De 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 Dupont De 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 Dupont De Nemours, you can compare the effects of market volatilities on GungHo Online and Dupont De 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 Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Dupont De.
Diversification Opportunities for GungHo Online and Dupont De
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GungHo and Dupont is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Dupont De Nemours in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dupont De Nemours 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 Dupont De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dupont De Nemours has no effect on the direction of GungHo Online i.e., GungHo Online and Dupont De go up and down completely randomly.
Pair Corralation between GungHo Online and Dupont De
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.5 times more return on investment than Dupont De. However, GungHo Online is 1.5 times more volatile than Dupont De Nemours. It trades about 0.04 of its potential returns per unit of risk. Dupont De Nemours is currently generating about 0.03 per unit of risk. If you would invest 1,490 in GungHo Online Entertainment on August 29, 2024 and sell it today you would earn a total of 300.00 from holding GungHo Online Entertainment or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Dupont De Nemours
Performance |
| Timeline |
| GungHo Online Entert |
| Dupont De Nemours |
GungHo Online and Dupont De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Dupont De
The main advantage of trading using opposite GungHo Online and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Dupont De 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 Dupont De will offset losses from the drop in Dupont De's long position.| GungHo Online vs. Sea Limited | GungHo Online vs. Superior Plus Corp | GungHo Online vs. NMI Holdings | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
| Dupont De vs. Linde plc | Dupont De vs. Superior Plus Corp | Dupont De vs. NMI Holdings | Dupont De vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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