Correlation Between GungHo Online and Pure Storage
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Pure Storage 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 Pure Storage 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 Pure Storage, you can compare the effects of market volatilities on GungHo Online and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Pure Storage.
Diversification Opportunities for GungHo Online and Pure Storage
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GungHo and Pure is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of GungHo Online i.e., GungHo Online and Pure Storage go up and down completely randomly.
Pair Corralation between GungHo Online and Pure Storage
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 0.59 times more return on investment than Pure Storage. However, GungHo Online Entertainment is 1.69 times less risky than Pure Storage. It trades about -0.06 of its potential returns per unit of risk. Pure Storage is currently generating about -0.16 per unit of risk. If you would invest 1,800 in GungHo Online Entertainment on January 12, 2025 and sell it today you would lose (70.00) from holding GungHo Online Entertainment or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Pure Storage
Performance |
| Timeline |
| GungHo Online Entert |
| Pure Storage |
GungHo Online and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Pure Storage
The main advantage of trading using opposite GungHo Online and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.| GungHo Online vs. American Eagle Outfitters | GungHo Online vs. MELIA HOTELS | GungHo Online vs. PPHE HOTEL GROUP | GungHo Online vs. Luckin Coffee |
| Pure Storage vs. DICKS Sporting Goods | Pure Storage vs. SOEDER SPORTFISKE AB | Pure Storage vs. Yuexiu Transport Infrastructure | Pure Storage vs. Geratherm Medical AG |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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