Correlation Between REVO INSURANCE and GungHo Online
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE 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 REVO INSURANCE and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and GungHo Online Entertainment, you can compare the effects of market volatilities on REVO INSURANCE 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 REVO INSURANCE with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and GungHo Online.
Diversification Opportunities for REVO INSURANCE and GungHo Online
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between REVO and GungHo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA 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 REVO INSURANCE 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 REVO INSURANCE SPA 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 REVO INSURANCE i.e., REVO INSURANCE and GungHo Online go up and down completely randomly.
Pair Corralation between REVO INSURANCE and GungHo Online
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 1.66 times more return on investment than GungHo Online. However, REVO INSURANCE is 1.66 times more volatile than GungHo Online Entertainment. It trades about 0.01 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.08 per unit of risk. If you would invest 1,165 in REVO INSURANCE SPA on October 29, 2024 and sell it today you would lose (10.00) from holding REVO INSURANCE SPA or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. GungHo Online Entertainment
Performance |
| Timeline |
| REVO INSURANCE SPA |
| GungHo Online Entert |
REVO INSURANCE and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and GungHo Online
The main advantage of trading using opposite REVO INSURANCE and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE 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.| REVO INSURANCE vs. DELTA AIR LINES | REVO INSURANCE vs. DISTRICT METALS | REVO INSURANCE vs. FIREWEED METALS P | REVO INSURANCE vs. AEON METALS LTD |
| GungHo Online vs. PATTIES FOODS | GungHo Online vs. Altair Engineering | GungHo Online vs. Westinghouse Air Brake | GungHo Online vs. RYANAIR HLDGS ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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