Correlation Between PATTIES FOODS and GungHo Online
Can any of the company-specific risk be diversified away by investing in both PATTIES FOODS 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 PATTIES FOODS and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PATTIES FOODS and GungHo Online Entertainment, you can compare the effects of market volatilities on PATTIES FOODS 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 PATTIES FOODS with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of PATTIES FOODS and GungHo Online.
Diversification Opportunities for PATTIES FOODS and GungHo Online
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PATTIES and GungHo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PATTIES FOODS 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 PATTIES FOODS 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 PATTIES FOODS 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 PATTIES FOODS i.e., PATTIES FOODS and GungHo Online go up and down completely randomly.
Pair Corralation between PATTIES FOODS and GungHo Online
Assuming the 90 days horizon PATTIES FOODS is expected to under-perform the GungHo Online. In addition to that, PATTIES FOODS is 1.24 times more volatile than GungHo Online Entertainment. It trades about -0.05 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.06 per unit of volatility. If you would invest 1,920 in GungHo Online Entertainment on November 7, 2024 and sell it today you would earn a total of 50.00 from holding GungHo Online Entertainment or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PATTIES FOODS vs. GungHo Online Entertainment
Performance |
| Timeline |
| PATTIES FOODS |
| GungHo Online Entert |
PATTIES FOODS and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PATTIES FOODS and GungHo Online
The main advantage of trading using opposite PATTIES FOODS and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PATTIES FOODS 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.| PATTIES FOODS vs. Perseus Mining Limited | PATTIES FOODS vs. STGEORGE MINING LTD | PATTIES FOODS vs. PennyMac Mortgage Investment | PATTIES FOODS vs. MCEWEN MINING INC |
| GungHo Online vs. Easy Software AG | GungHo Online vs. KOBE STEEL LTD | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. TOMBADOR IRON LTD |
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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