Correlation Between GungHo Online and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both GungHo Online and BORR DRILLING 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 BORR DRILLING 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 BORR DRILLING NEW, you can compare the effects of market volatilities on GungHo Online and BORR DRILLING 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 BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and BORR DRILLING.
Diversification Opportunities for GungHo Online and BORR DRILLING
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GungHo and BORR is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW 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 BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of GungHo Online i.e., GungHo Online and BORR DRILLING go up and down completely randomly.
Pair Corralation between GungHo Online and BORR DRILLING
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 0.38 times more return on investment than BORR DRILLING. However, GungHo Online Entertainment is 2.62 times less risky than BORR DRILLING. It trades about 0.02 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about -0.02 per unit of risk. If you would invest 1,850 in GungHo Online Entertainment on September 14, 2024 and sell it today you would earn a total of 10.00 from holding GungHo Online Entertainment or generate 0.54% 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. BORR DRILLING NEW
Performance |
| Timeline |
| GungHo Online Entert |
| BORR DRILLING NEW |
GungHo Online and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and BORR DRILLING
The main advantage of trading using opposite GungHo Online and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING's long position.| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
| BORR DRILLING vs. MAVEN WIRELESS SWEDEN | BORR DRILLING vs. Dairy Farm International | BORR DRILLING vs. CITY OFFICE REIT | BORR DRILLING vs. Tyson Foods |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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