Correlation Between GigaMedia and Komercn Banka
Can any of the company-specific risk be diversified away by investing in both GigaMedia and Komercn Banka 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 GigaMedia and Komercn Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Komercn banka as, you can compare the effects of market volatilities on GigaMedia and Komercn Banka 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 GigaMedia with a short position of Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Komercn Banka.
Diversification Opportunities for GigaMedia and Komercn Banka
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GigaMedia and Komercn is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and GigaMedia 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 GigaMedia are associated (or correlated) with Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of GigaMedia i.e., GigaMedia and Komercn Banka go up and down completely randomly.
Pair Corralation between GigaMedia and Komercn Banka
Assuming the 90 days trading horizon GigaMedia is expected to generate 1.67 times less return on investment than Komercn Banka. In addition to that, GigaMedia is 1.08 times more volatile than Komercn banka as. It trades about 0.03 of its total potential returns per unit of risk. Komercn banka as is currently generating about 0.05 per unit of volatility. If you would invest 2,858 in Komercn banka as on September 14, 2024 and sell it today you would earn a total of 512.00 from holding Komercn banka as or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. Komercn banka as
Performance |
| Timeline |
| GigaMedia |
| Komercn banka as |
GigaMedia and Komercn Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Komercn Banka
The main advantage of trading using opposite GigaMedia and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka's long position.| GigaMedia vs. AOYAMA TRADING | GigaMedia vs. REGAL ASIAN INVESTMENTS | GigaMedia vs. AM EAGLE OUTFITTERS | GigaMedia vs. HK Electric Investments |
| Komercn Banka vs. Datalogic SpA | Komercn Banka vs. QURATE RETAIL INC | Komercn Banka vs. Datang International Power | Komercn Banka vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |