Correlation Between GungHo Online and Archer Daniels
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Archer Daniels 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 Archer Daniels 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 Archer Daniels Midland, you can compare the effects of market volatilities on GungHo Online and Archer Daniels 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 Archer Daniels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Archer Daniels.
Diversification Opportunities for GungHo Online and Archer Daniels
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Archer is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland 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 Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of GungHo Online i.e., GungHo Online and Archer Daniels go up and down completely randomly.
Pair Corralation between GungHo Online and Archer Daniels
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the Archer Daniels. In addition to that, GungHo Online is 2.16 times more volatile than Archer Daniels Midland. It trades about -0.08 of its total potential returns per unit of risk. Archer Daniels Midland is currently generating about -0.06 per unit of volatility. If you would invest 4,876 in Archer Daniels Midland on October 29, 2024 and sell it today you would lose (65.00) from holding Archer Daniels Midland or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Archer Daniels Midland
Performance |
| Timeline |
| GungHo Online Entert |
| Archer Daniels Midland |
GungHo Online and Archer Daniels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Archer Daniels
The main advantage of trading using opposite GungHo Online and Archer Daniels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Archer Daniels 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 Archer Daniels will offset losses from the drop in Archer Daniels' long position.| GungHo Online vs. PATTIES FOODS | GungHo Online vs. Altair Engineering | GungHo Online vs. Westinghouse Air Brake | GungHo Online vs. RYANAIR HLDGS ADR |
| Archer Daniels vs. DETALION GAMES SA | Archer Daniels vs. Gaming and Leisure | Archer Daniels vs. Games Workshop Group | Archer Daniels vs. Penn National Gaming |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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