Correlation Between GungHo Online and Hyrican Informationssyst
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Hyrican Informationssyst 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 Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft, you can compare the effects of market volatilities on GungHo Online and Hyrican Informationssyst 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 Hyrican Informationssyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Hyrican Informationssyst.
Diversification Opportunities for GungHo Online and Hyrican Informationssyst
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Hyrican is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Hyrican Informationssysteme Ak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyrican Informationssyst 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 Hyrican Informationssyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyrican Informationssyst has no effect on the direction of GungHo Online i.e., GungHo Online and Hyrican Informationssyst go up and down completely randomly.
Pair Corralation between GungHo Online and Hyrican Informationssyst
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 7.79 times more return on investment than Hyrican Informationssyst. However, GungHo Online is 7.79 times more volatile than Hyrican Informationssysteme Aktiengesellschaft. It trades about 0.0 of its potential returns per unit of risk. Hyrican Informationssysteme Aktiengesellschaft is currently generating about 0.0 per unit of risk. If you would invest 1,990 in GungHo Online Entertainment on November 3, 2024 and sell it today you would lose (10.00) from holding GungHo Online Entertainment or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Hyrican Informationssysteme Ak
Performance |
| Timeline |
| GungHo Online Entert |
| Hyrican Informationssyst |
GungHo Online and Hyrican Informationssyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Hyrican Informationssyst
The main advantage of trading using opposite GungHo Online and Hyrican Informationssyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Hyrican Informationssyst 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 Hyrican Informationssyst will offset losses from the drop in Hyrican Informationssyst'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 |
| Hyrican Informationssyst vs. Solstad Offshore ASA | Hyrican Informationssyst vs. Take Two Interactive Software | Hyrican Informationssyst vs. CARSALESCOM | Hyrican Informationssyst vs. H2O Retailing |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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