Correlation Between NTG Nordic and GungHo Online
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and GungHo Online Entertainment, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and GungHo Online.
Diversification Opportunities for NTG Nordic and GungHo Online
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NTG and GungHo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport 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 NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and GungHo Online go up and down completely randomly.
Pair Corralation between NTG Nordic and GungHo Online
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.61 times more return on investment than GungHo Online. However, NTG Nordic Transport is 1.63 times less risky than GungHo Online. It trades about 0.03 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.13 per unit of risk. If you would invest 3,775 in NTG Nordic Transport on September 2, 2024 and sell it today you would earn a total of 30.00 from holding NTG Nordic Transport or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. GungHo Online Entertainment
Performance |
| Timeline |
| NTG Nordic Transport |
| GungHo Online Entert |
NTG Nordic and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and GungHo Online
The main advantage of trading using opposite NTG Nordic and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech | NTG Nordic vs. SIVERS SEMICONDUCTORS AB |
| GungHo Online vs. Nintendo Co | GungHo Online vs. Sea Limited | GungHo Online vs. Superior Plus Corp | GungHo Online vs. NMI Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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