Correlation Between Ming Le and OURGAME INTHOLDL-00005
Can any of the company-specific risk be diversified away by investing in both Ming Le and OURGAME INTHOLDL-00005 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 Ming Le and OURGAME INTHOLDL-00005 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ming Le Sports and OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on Ming Le and OURGAME INTHOLDL-00005 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 Ming Le with a short position of OURGAME INTHOLDL-00005. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and OURGAME INTHOLDL-00005.
Diversification Opportunities for Ming Le and OURGAME INTHOLDL-00005
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ming and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 and Ming Le 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 Ming Le Sports are associated (or correlated) with OURGAME INTHOLDL-00005. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of Ming Le i.e., Ming Le and OURGAME INTHOLDL-00005 go up and down completely randomly.
Pair Corralation between Ming Le and OURGAME INTHOLDL-00005
Assuming the 90 days trading horizon Ming Le is expected to generate 6.86 times less return on investment than OURGAME INTHOLDL-00005. But when comparing it to its historical volatility, Ming Le Sports is 3.51 times less risky than OURGAME INTHOLDL-00005. It trades about 0.02 of its potential returns per unit of risk. OURGAME INTHOLDL 00005 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.50 in OURGAME INTHOLDL 00005 on August 31, 2024 and sell it today you would earn a total of 0.10 from holding OURGAME INTHOLDL 00005 or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ming Le Sports vs. OURGAME INTHOLDL 00005
Performance |
| Timeline |
| Ming Le Sports |
| OURGAME INTHOLDL 00005 |
Ming Le and OURGAME INTHOLDL-00005 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Le and OURGAME INTHOLDL-00005
The main advantage of trading using opposite Ming Le and OURGAME INTHOLDL-00005 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le position performs unexpectedly, OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005 will offset losses from the drop in OURGAME INTHOLDL-00005's long position.The idea behind Ming Le Sports and OURGAME INTHOLDL 00005 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| OURGAME INTHOLDL-00005 vs. Compugroup Medical SE | OURGAME INTHOLDL-00005 vs. Infrastrutture Wireless Italiane | OURGAME INTHOLDL-00005 vs. Electronic Arts | OURGAME INTHOLDL-00005 vs. ELECTRONIC ARTS |
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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