Correlation Between Nordic Semiconductor and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor 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 Nordic Semiconductor and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and GungHo Online Entertainment, you can compare the effects of market volatilities on Nordic Semiconductor 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 Nordic Semiconductor with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and GungHo Online.
Diversification Opportunities for Nordic Semiconductor and GungHo Online
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nordic and GungHo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA 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 Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and GungHo Online go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and GungHo Online
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.55 times more return on investment than GungHo Online. However, Nordic Semiconductor ASA is 1.83 times less risky than GungHo Online. It trades about 0.69 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 853.00 in Nordic Semiconductor ASA on October 29, 2024 and sell it today you would earn a total of 158.00 from holding Nordic Semiconductor ASA or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. GungHo Online Entertainment
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| GungHo Online Entert |
Nordic Semiconductor and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and GungHo Online
The main advantage of trading using opposite Nordic Semiconductor and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor 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.| Nordic Semiconductor vs. SIEM OFFSHORE NEW | Nordic Semiconductor vs. SBM OFFSHORE | Nordic Semiconductor vs. SOLSTAD OFFSHORE NK | Nordic Semiconductor vs. UNITED RENTALS |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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