Correlation Between GungHo Online and CODERE ONLINE
Can any of the company-specific risk be diversified away by investing in both GungHo Online and CODERE ONLINE 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 CODERE ONLINE 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 CODERE ONLINE LUX, you can compare the effects of market volatilities on GungHo Online and CODERE ONLINE 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 CODERE ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and CODERE ONLINE.
Diversification Opportunities for GungHo Online and CODERE ONLINE
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GungHo and CODERE is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and CODERE ONLINE LUX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CODERE ONLINE LUX 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 CODERE ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CODERE ONLINE LUX has no effect on the direction of GungHo Online i.e., GungHo Online and CODERE ONLINE go up and down completely randomly.
Pair Corralation between GungHo Online and CODERE ONLINE
Assuming the 90 days horizon GungHo Online is expected to generate 5.01 times less return on investment than CODERE ONLINE. But when comparing it to its historical volatility, GungHo Online Entertainment is 1.63 times less risky than CODERE ONLINE. It trades about 0.04 of its potential returns per unit of risk. CODERE ONLINE LUX is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 260.00 in CODERE ONLINE LUX on August 25, 2024 and sell it today you would earn a total of 425.00 from holding CODERE ONLINE LUX or generate 163.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. CODERE ONLINE LUX
Performance |
| Timeline |
| GungHo Online Entert |
| CODERE ONLINE LUX |
GungHo Online and CODERE ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and CODERE ONLINE
The main advantage of trading using opposite GungHo Online and CODERE ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, CODERE ONLINE 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 CODERE ONLINE will offset losses from the drop in CODERE ONLINE's long position.| GungHo Online vs. Sea Limited | GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Bilibili |
| CODERE ONLINE vs. Evolution AB | CODERE ONLINE vs. Churchill Downs Incorporated | CODERE ONLINE vs. Scientific Games | CODERE ONLINE vs. International Game Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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