Correlation Between QURATE RETAIL and GungHo Online
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL 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 QURATE RETAIL and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QURATE RETAIL INC and GungHo Online Entertainment, you can compare the effects of market volatilities on QURATE RETAIL 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 QURATE RETAIL with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and GungHo Online.
Diversification Opportunities for QURATE RETAIL and GungHo Online
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between QURATE and GungHo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC 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 QURATE RETAIL 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 QURATE RETAIL INC 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 QURATE RETAIL i.e., QURATE RETAIL and GungHo Online go up and down completely randomly.
Pair Corralation between QURATE RETAIL and GungHo Online
Assuming the 90 days trading horizon QURATE RETAIL INC is expected to under-perform the GungHo Online. In addition to that, QURATE RETAIL is 1.43 times more volatile than GungHo Online Entertainment. It trades about -0.08 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.01 per unit of volatility. If you would invest 1,850 in GungHo Online Entertainment on September 3, 2024 and sell it today you would lose (10.00) from holding GungHo Online Entertainment or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QURATE RETAIL INC vs. GungHo Online Entertainment
Performance |
| Timeline |
| QURATE RETAIL INC |
| GungHo Online Entert |
QURATE RETAIL and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QURATE RETAIL and GungHo Online
The main advantage of trading using opposite QURATE RETAIL and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL 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.| QURATE RETAIL vs. DICKS Sporting Goods | QURATE RETAIL vs. YATRA ONLINE DL 0001 | QURATE RETAIL vs. SALESFORCE INC CDR | QURATE RETAIL vs. COLUMBIA SPORTSWEAR |
| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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