Correlation Between WINMARK and GungHo Online
Can any of the company-specific risk be diversified away by investing in both WINMARK and GungHo Online 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 WINMARK and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINMARK and GungHo Online Entertainment, you can compare the effects of market volatilities on WINMARK and GungHo Online 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 WINMARK with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINMARK and GungHo Online.
Diversification Opportunities for WINMARK and GungHo Online
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between WINMARK and GungHo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding WINMARK and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and WINMARK 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 WINMARK are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of WINMARK i.e., WINMARK and GungHo Online go up and down completely randomly.
Pair Corralation between WINMARK and GungHo Online
Assuming the 90 days trading horizon WINMARK is expected to generate 0.98 times more return on investment than GungHo Online. However, WINMARK is 1.02 times less risky than GungHo Online. It trades about 0.16 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.03 per unit of risk. If you would invest 31,528 in WINMARK on September 12, 2024 and sell it today you would earn a total of 7,072 from holding WINMARK or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
WINMARK vs. GungHo Online Entertainment
Performance |
| Timeline |
| WINMARK |
| GungHo Online Entert |
WINMARK and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WINMARK and GungHo Online
The main advantage of trading using opposite WINMARK and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINMARK position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| WINMARK vs. Regions Financial | WINMARK vs. VIRG NATL BANKSH | WINMARK vs. KENEDIX OFFICE INV | WINMARK vs. CITY OFFICE REIT |
| GungHo Online vs. Infrastrutture Wireless Italiane | GungHo Online vs. CENTURIA OFFICE REIT | GungHo Online vs. MAVEN WIRELESS SWEDEN | GungHo Online vs. CITY OFFICE REIT |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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