Correlation Between GungHo Online and LEWAG HOLDING
Can any of the company-specific risk be diversified away by investing in both GungHo Online and LEWAG HOLDING 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 LEWAG HOLDING 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 LEWAG HOLDING AG, you can compare the effects of market volatilities on GungHo Online and LEWAG HOLDING 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 LEWAG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and LEWAG HOLDING.
Diversification Opportunities for GungHo Online and LEWAG HOLDING
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GungHo and LEWAG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and LEWAG HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEWAG HOLDING AG 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 LEWAG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEWAG HOLDING AG has no effect on the direction of GungHo Online i.e., GungHo Online and LEWAG HOLDING go up and down completely randomly.
Pair Corralation between GungHo Online and LEWAG HOLDING
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the LEWAG HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, GungHo Online Entertainment is 1.07 times less risky than LEWAG HOLDING. The stock trades about -0.15 of its potential returns per unit of risk. The LEWAG HOLDING AG is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,180 in LEWAG HOLDING AG on September 13, 2024 and sell it today you would lose (30.00) from holding LEWAG HOLDING AG or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GungHo Online Entertainment vs. LEWAG HOLDING AG
Performance |
| Timeline |
| GungHo Online Entert |
| LEWAG HOLDING AG |
GungHo Online and LEWAG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and LEWAG HOLDING
The main advantage of trading using opposite GungHo Online and LEWAG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, LEWAG HOLDING 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 LEWAG HOLDING will offset losses from the drop in LEWAG HOLDING's long position.| GungHo Online vs. Infrastrutture Wireless Italiane | GungHo Online vs. CENTURIA OFFICE REIT | GungHo Online vs. MAVEN WIRELESS SWEDEN | GungHo Online vs. CITY OFFICE REIT |
| LEWAG HOLDING vs. GungHo Online Entertainment | LEWAG HOLDING vs. New Residential Investment | LEWAG HOLDING vs. PennyMac Mortgage Investment | LEWAG HOLDING vs. DIVERSIFIED ROYALTY |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |