Correlation Between GungHo Online and C PARAN
Can any of the company-specific risk be diversified away by investing in both GungHo Online and C PARAN 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 C PARAN 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 C PARAN EN, you can compare the effects of market volatilities on GungHo Online and C PARAN 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 C PARAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and C PARAN.
Diversification Opportunities for GungHo Online and C PARAN
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GungHo and ELP1 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and C PARAN EN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C PARAN EN 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 C PARAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C PARAN EN has no effect on the direction of GungHo Online i.e., GungHo Online and C PARAN go up and down completely randomly.
Pair Corralation between GungHo Online and C PARAN
Assuming the 90 days horizon GungHo Online is expected to generate 217.17 times less return on investment than C PARAN. In addition to that, GungHo Online is 1.41 times more volatile than C PARAN EN. It trades about 0.0 of its total potential returns per unit of risk. C PARAN EN is currently generating about 0.31 per unit of volatility. If you would invest 550.00 in C PARAN EN on November 3, 2024 and sell it today you would earn a total of 65.00 from holding C PARAN EN or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GungHo Online Entertainment vs. C PARAN EN
Performance |
| Timeline |
| GungHo Online Entert |
| C PARAN EN |
GungHo Online and C PARAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and C PARAN
The main advantage of trading using opposite GungHo Online and C PARAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, C PARAN 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 C PARAN will offset losses from the drop in C PARAN's long position.| GungHo Online vs. PLANT VEDA FOODS | GungHo Online vs. Cal Maine Foods | GungHo Online vs. VARIOUS EATERIES LS | GungHo Online vs. Ebro Foods SA |
| C PARAN vs. Dalata Hotel Group | C PARAN vs. OFFICE DEPOT | C PARAN vs. American Homes 4 | C PARAN vs. DFS Furniture PLC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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