Correlation Between GungHo Online and Soken Chemical
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Soken Chemical 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 Soken Chemical 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 Soken Chemical Engineering, you can compare the effects of market volatilities on GungHo Online and Soken Chemical 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 Soken Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Soken Chemical.
Diversification Opportunities for GungHo Online and Soken Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GungHo and Soken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Soken Chemical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soken Chemical Engin 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 Soken Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soken Chemical Engin has no effect on the direction of GungHo Online i.e., GungHo Online and Soken Chemical go up and down completely randomly.
Pair Corralation between GungHo Online and Soken Chemical
If you would invest 1,266 in Soken Chemical Engineering on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Soken Chemical Engineering or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Soken Chemical Engineering
Performance |
| Timeline |
| GungHo Online Entert |
| Soken Chemical Engin |
GungHo Online and Soken Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Soken Chemical
The main advantage of trading using opposite GungHo Online and Soken Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Soken Chemical 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 Soken Chemical will offset losses from the drop in Soken Chemical's long position.| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
| Soken Chemical vs. ATOSS SOFTWARE | Soken Chemical vs. Goodyear Tire Rubber | Soken Chemical vs. Tencent Music Entertainment | Soken Chemical vs. Warner Music Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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