Correlation Between GungHo Online and Gentex
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Gentex 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 Gentex 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 Gentex, you can compare the effects of market volatilities on GungHo Online and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Gentex.
Diversification Opportunities for GungHo Online and Gentex
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Gentex is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of GungHo Online i.e., GungHo Online and Gentex go up and down completely randomly.
Pair Corralation between GungHo Online and Gentex
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.76 times more return on investment than Gentex. However, GungHo Online is 1.76 times more volatile than Gentex. It trades about 0.05 of its potential returns per unit of risk. Gentex is currently generating about -0.05 per unit of risk. If you would invest 1,540 in GungHo Online Entertainment on October 30, 2024 and sell it today you would earn a total of 350.00 from holding GungHo Online Entertainment or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Gentex
Performance |
| Timeline |
| GungHo Online Entert |
| Gentex |
GungHo Online and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Gentex
The main advantage of trading using opposite GungHo Online and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| GungHo Online vs. ANGLO ASIAN MINING | GungHo Online vs. FIH MOBILE | GungHo Online vs. Charter Communications | GungHo Online vs. De Grey Mining |
| Gentex vs. Rayonier Advanced Materials | Gentex vs. Compagnie Plastic Omnium | Gentex vs. Playtech plc | Gentex vs. PLAYTIKA HOLDING DL 01 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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