Correlation Between GungHo Online and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both GungHo Online and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on GungHo Online and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and TRADEGATE.
Diversification Opportunities for GungHo Online and TRADEGATE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GungHo and TRADEGATE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of GungHo Online i.e., GungHo Online and TRADEGATE go up and down completely randomly.
Pair Corralation between GungHo Online and TRADEGATE
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 11.29 times more return on investment than TRADEGATE. However, GungHo Online is 11.29 times more volatile than TRADEGATE. It trades about 0.06 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.07 per unit of risk. If you would invest 1,820 in GungHo Online Entertainment on October 23, 2024 and sell it today you would earn a total of 80.00 from holding GungHo Online Entertainment or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. TRADEGATE
Performance |
| Timeline |
| GungHo Online Entert |
| TRADEGATE |
GungHo Online and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and TRADEGATE
The main advantage of trading using opposite GungHo Online and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| GungHo Online vs. Nintendo Co | GungHo Online vs. Nintendo Co | GungHo Online vs. Sea Limited | GungHo Online vs. Electronic Arts |
| TRADEGATE vs. MYFAIR GOLD P | TRADEGATE vs. Telecom Argentina SA | TRADEGATE vs. SOGECLAIR SA INH | TRADEGATE vs. Siamgas And Petrochemicals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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