Correlation Between GungHo Online and T MOBILE
Can any of the company-specific risk be diversified away by investing in both GungHo Online and T MOBILE 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 T MOBILE 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 T MOBILE US, you can compare the effects of market volatilities on GungHo Online and T MOBILE 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and T MOBILE.
Diversification Opportunities for GungHo Online and T MOBILE
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GungHo and TM5 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE US has no effect on the direction of GungHo Online i.e., GungHo Online and T MOBILE go up and down completely randomly.
Pair Corralation between GungHo Online and T MOBILE
Assuming the 90 days horizon GungHo Online is expected to generate 1.39 times less return on investment than T MOBILE. In addition to that, GungHo Online is 2.12 times more volatile than T MOBILE US. It trades about 0.06 of its total potential returns per unit of risk. T MOBILE US is currently generating about 0.17 per unit of volatility. If you would invest 14,483 in T MOBILE US on September 4, 2024 and sell it today you would earn a total of 8,912 from holding T MOBILE US or generate 61.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GungHo Online Entertainment vs. T MOBILE US
Performance |
| Timeline |
| GungHo Online Entert |
| T MOBILE US |
GungHo Online and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and T MOBILE
The main advantage of trading using opposite GungHo Online and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE'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 |
| T MOBILE vs. CODERE ONLINE LUX | T MOBILE vs. Gruppo Mutuionline SpA | T MOBILE vs. Algonquin Power Utilities | T MOBILE vs. GungHo Online Entertainment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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