Correlation Between GungHo Online and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both GungHo Online and GALENA MINING 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 GALENA MINING 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 GALENA MINING LTD, you can compare the effects of market volatilities on GungHo Online and GALENA MINING 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 GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and GALENA MINING.
Diversification Opportunities for GungHo Online and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GungHo and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD 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 GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of GungHo Online i.e., GungHo Online and GALENA MINING go up and down completely randomly.
Pair Corralation between GungHo Online and GALENA MINING
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.28 times more return on investment than GALENA MINING. However, GungHo Online is 1.28 times more volatile than GALENA MINING LTD. It trades about 0.05 of its potential returns per unit of risk. GALENA MINING LTD is currently generating about -0.06 per unit of risk. If you would invest 1,440 in GungHo Online Entertainment on September 2, 2024 and sell it today you would earn a total of 400.00 from holding GungHo Online Entertainment or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GungHo Online Entertainment vs. GALENA MINING LTD
Performance |
| Timeline |
| GungHo Online Entert |
| GALENA MINING LTD |
GungHo Online and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and GALENA MINING
The main advantage of trading using opposite GungHo Online and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, GALENA MINING 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.| GungHo Online vs. Nintendo Co | GungHo Online vs. Sea Limited | GungHo Online vs. Superior Plus Corp | GungHo Online vs. NMI Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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