Correlation Between GungHo Online and Walmart
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on GungHo Online and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Walmart.
Diversification Opportunities for GungHo Online and Walmart
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GungHo and Walmart is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of GungHo Online i.e., GungHo Online and Walmart go up and down completely randomly.
Pair Corralation between GungHo Online and Walmart
Assuming the 90 days horizon GungHo Online is expected to generate 140.57 times less return on investment than Walmart. In addition to that, GungHo Online is 2.08 times more volatile than Walmart. It trades about 0.0 of its total potential returns per unit of risk. Walmart is currently generating about 0.3 per unit of volatility. If you would invest 8,787 in Walmart on November 3, 2024 and sell it today you would earn a total of 665.00 from holding Walmart or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Walmart
Performance |
| Timeline |
| GungHo Online Entert |
| Walmart |
GungHo Online and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Walmart
The main advantage of trading using opposite GungHo Online and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| GungHo Online vs. PLANT VEDA FOODS | GungHo Online vs. Cal Maine Foods | GungHo Online vs. VARIOUS EATERIES LS | GungHo Online vs. Ebro Foods SA |
| Walmart vs. Computershare Limited | Walmart vs. MAGNUM MINING EXP | Walmart vs. Ribbon Communications | Walmart vs. Hemisphere Energy Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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