Correlation Between The9 and US Global
Can any of the company-specific risk be diversified away by investing in both The9 and US Global 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 The9 and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The9 Ltd ADR and US Global Investors, you can compare the effects of market volatilities on The9 and US Global 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 The9 with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of The9 and US Global.
Diversification Opportunities for The9 and US Global
Excellent diversification
The 3 months correlation between The9 and GROW is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The9 Ltd ADR and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and The9 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 The9 Ltd ADR are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of The9 i.e., The9 and US Global go up and down completely randomly.
Pair Corralation between The9 and US Global
Given the investment horizon of 90 days The9 Ltd ADR is expected to generate 4.02 times more return on investment than US Global. However, The9 is 4.02 times more volatile than US Global Investors. It trades about 0.33 of its potential returns per unit of risk. US Global Investors is currently generating about 0.0 per unit of risk. If you would invest 879.00 in The9 Ltd ADR on August 31, 2024 and sell it today you would earn a total of 453.00 from holding The9 Ltd ADR or generate 51.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The9 Ltd ADR vs. US Global Investors
Performance |
| Timeline |
| The9 Ltd ADR |
| US Global Investors |
The9 and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The9 and US Global
The main advantage of trading using opposite The9 and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The9 position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |