Correlation Between KINGBOARD CHEMICAL and GungHo Online
Can any of the company-specific risk be diversified away by investing in both KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KINGBOARD CHEMICAL and GungHo Online Entertainment, you can compare the effects of market volatilities on KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINGBOARD CHEMICAL and GungHo Online.
Diversification Opportunities for KINGBOARD CHEMICAL and GungHo Online
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KINGBOARD and GungHo is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL i.e., KINGBOARD CHEMICAL and GungHo Online go up and down completely randomly.
Pair Corralation between KINGBOARD CHEMICAL and GungHo Online
Assuming the 90 days trading horizon KINGBOARD CHEMICAL is expected to generate 0.73 times more return on investment than GungHo Online. However, KINGBOARD CHEMICAL is 1.36 times less risky than GungHo Online. It trades about 0.03 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.05 per unit of risk. If you would invest 234.00 in KINGBOARD CHEMICAL on September 12, 2024 and sell it today you would earn a total of 2.00 from holding KINGBOARD CHEMICAL or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KINGBOARD CHEMICAL vs. GungHo Online Entertainment
Performance |
| Timeline |
| KINGBOARD CHEMICAL |
| GungHo Online Entert |
KINGBOARD CHEMICAL and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KINGBOARD CHEMICAL and GungHo Online
The main advantage of trading using opposite KINGBOARD CHEMICAL and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINGBOARD CHEMICAL 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.| KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc |
| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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