Correlation Between GungHo Online and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both GungHo Online and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on GungHo Online and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and SINGAPORE AIRLINES.
Diversification Opportunities for GungHo Online and SINGAPORE AIRLINES
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GungHo and SINGAPORE is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of GungHo Online i.e., GungHo Online and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between GungHo Online and SINGAPORE AIRLINES
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the SINGAPORE AIRLINES. In addition to that, GungHo Online is 2.18 times more volatile than SINGAPORE AIRLINES. It trades about -0.13 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.04 per unit of volatility. If you would invest 437.00 in SINGAPORE AIRLINES on September 4, 2024 and sell it today you would earn a total of 3.00 from holding SINGAPORE AIRLINES or generate 0.69% 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. SINGAPORE AIRLINES
Performance |
| Timeline |
| GungHo Online Entert |
| SINGAPORE AIRLINES |
GungHo Online and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and SINGAPORE AIRLINES
The main advantage of trading using opposite GungHo Online and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| GungHo Online vs. Nintendo Co | GungHo Online vs. Nintendo Co | GungHo Online vs. Sea Limited | GungHo Online vs. Take Two Interactive Software |
| SINGAPORE AIRLINES vs. TOTAL GABON | SINGAPORE AIRLINES vs. Walgreens Boots Alliance | SINGAPORE AIRLINES vs. Peak Resources Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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