Correlation Between GungHo Online and Salesforce
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Salesforce 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 Salesforce 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 Salesforce, you can compare the effects of market volatilities on GungHo Online and Salesforce 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 Salesforce. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Salesforce.
Diversification Opportunities for GungHo Online and Salesforce
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between GungHo and Salesforce is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Salesforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salesforce 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 Salesforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salesforce has no effect on the direction of GungHo Online i.e., GungHo Online and Salesforce go up and down completely randomly.
Pair Corralation between GungHo Online and Salesforce
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 0.98 times more return on investment than Salesforce. However, GungHo Online Entertainment is 1.02 times less risky than Salesforce. It trades about 0.06 of its potential returns per unit of risk. Salesforce is currently generating about 0.05 per unit of risk. If you would invest 1,520 in GungHo Online Entertainment on November 3, 2024 and sell it today you would earn a total of 450.00 from holding GungHo Online Entertainment or generate 29.61% 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. Salesforce
Performance |
| Timeline |
| GungHo Online Entert |
| Salesforce |
GungHo Online and Salesforce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Salesforce
The main advantage of trading using opposite GungHo Online and Salesforce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Salesforce 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 Salesforce will offset losses from the drop in Salesforce'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 |
| Salesforce vs. COVIVIO HOTELS INH | Salesforce vs. Pebblebrook Hotel Trust | Salesforce vs. DALATA HOTEL | Salesforce vs. Xinhua Winshare Publishing |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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