Correlation Between GungHo Online and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on GungHo Online and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Marie Brizard.
Diversification Opportunities for GungHo Online and Marie Brizard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GungHo and Marie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of GungHo Online i.e., GungHo Online and Marie Brizard go up and down completely randomly.
Pair Corralation between GungHo Online and Marie Brizard
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the Marie Brizard. In addition to that, GungHo Online is 1.84 times more volatile than Marie Brizard Wine. It trades about -0.13 of its total potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.07 per unit of volatility. If you would invest 382.00 in Marie Brizard Wine on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Marie Brizard Wine or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Marie Brizard Wine
Performance |
| Timeline |
| GungHo Online Entert |
| Marie Brizard Wine |
GungHo Online and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Marie Brizard
The main advantage of trading using opposite GungHo Online and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard'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 |
| Marie Brizard vs. Apple Inc | Marie Brizard vs. Apple Inc | Marie Brizard vs. Superior Plus Corp | Marie Brizard 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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