Correlation Between Kaiser Aluminum and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Kaiser Aluminum 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 Kaiser Aluminum and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaiser Aluminum and GungHo Online Entertainment, you can compare the effects of market volatilities on Kaiser Aluminum 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 Kaiser Aluminum with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaiser Aluminum and GungHo Online.
Diversification Opportunities for Kaiser Aluminum and GungHo Online
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kaiser and GungHo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kaiser Aluminum 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 Kaiser Aluminum 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 Kaiser Aluminum 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 Kaiser Aluminum i.e., Kaiser Aluminum and GungHo Online go up and down completely randomly.
Pair Corralation between Kaiser Aluminum and GungHo Online
Assuming the 90 days trading horizon Kaiser Aluminum is expected to under-perform the GungHo Online. In addition to that, Kaiser Aluminum is 1.03 times more volatile than GungHo Online Entertainment. It trades about -0.12 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.05 per unit of volatility. If you would invest 1,970 in GungHo Online Entertainment on September 12, 2024 and sell it today you would lose (60.00) from holding GungHo Online Entertainment or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaiser Aluminum vs. GungHo Online Entertainment
Performance |
| Timeline |
| Kaiser Aluminum |
| GungHo Online Entert |
Kaiser Aluminum and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaiser Aluminum and GungHo Online
The main advantage of trading using opposite Kaiser Aluminum and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaiser Aluminum 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.| Kaiser Aluminum vs. Tencent Music Entertainment | Kaiser Aluminum vs. Vastned Retail NV | Kaiser Aluminum vs. MARKET VECTR RETAIL | Kaiser Aluminum vs. PLAYSTUDIOS A DL 0001 |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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