Correlation Between GungHo Online and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both GungHo Online and MARKET VECTR 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 MARKET VECTR 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 MARKET VECTR RETAIL, you can compare the effects of market volatilities on GungHo Online and MARKET VECTR 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 MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and MARKET VECTR.
Diversification Opportunities for GungHo Online and MARKET VECTR
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and MARKET is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL 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 MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of GungHo Online i.e., GungHo Online and MARKET VECTR go up and down completely randomly.
Pair Corralation between GungHo Online and MARKET VECTR
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 2.81 times more return on investment than MARKET VECTR. However, GungHo Online is 2.81 times more volatile than MARKET VECTR RETAIL. It trades about 0.06 of its potential returns per unit of risk. MARKET VECTR RETAIL is currently generating about 0.12 per unit of risk. If you would invest 1,520 in GungHo Online Entertainment on November 3, 2024 and sell it today you would earn a total of 450.00 from holding GungHo Online Entertainment or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
GungHo Online Entertainment vs. MARKET VECTR RETAIL
Performance |
| Timeline |
| GungHo Online Entert |
| MARKET VECTR RETAIL |
GungHo Online and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and MARKET VECTR
The main advantage of trading using opposite GungHo Online and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, MARKET VECTR 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 MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.| GungHo Online vs. ONWARD MEDICAL BV | GungHo Online vs. CNVISION MEDIA | GungHo Online vs. MeVis Medical Solutions | GungHo Online vs. ANTA SPORTS PRODUCT |
| MARKET VECTR vs. Pebblebrook Hotel Trust | MARKET VECTR vs. Computershare Limited | MARKET VECTR vs. BRAEMAR HOTELS RES | MARKET VECTR vs. Park Hotels Resorts |
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.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |