Correlation Between CONTAGIOUS GAMING and LG Electronics
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING and LG Electronics 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 CONTAGIOUS GAMING and LG Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONTAGIOUS GAMING INC and LG Electronics, you can compare the effects of market volatilities on CONTAGIOUS GAMING and LG Electronics 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 CONTAGIOUS GAMING with a short position of LG Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and LG Electronics.
Diversification Opportunities for CONTAGIOUS GAMING and LG Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and LGLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and LG Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Electronics and CONTAGIOUS GAMING 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 CONTAGIOUS GAMING INC are associated (or correlated) with LG Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Electronics has no effect on the direction of CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and LG Electronics go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and LG Electronics
If you would invest 0.30 in CONTAGIOUS GAMING INC on October 12, 2024 and sell it today you would earn a total of 0.00 from holding CONTAGIOUS GAMING INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
CONTAGIOUS GAMING INC vs. LG Electronics
Performance |
| Timeline |
| CONTAGIOUS GAMING INC |
| LG Electronics |
CONTAGIOUS GAMING and LG Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONTAGIOUS GAMING and LG Electronics
The main advantage of trading using opposite CONTAGIOUS GAMING and LG Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING position performs unexpectedly, LG Electronics 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 LG Electronics will offset losses from the drop in LG Electronics' long position.| CONTAGIOUS GAMING vs. Yuexiu Transport Infrastructure | CONTAGIOUS GAMING vs. RYANAIR HLDGS ADR | CONTAGIOUS GAMING vs. PARKEN Sport Entertainment | CONTAGIOUS GAMING vs. ANTA SPORTS PRODUCT |
| LG Electronics vs. GRUPO CARSO A1 | LG Electronics vs. Commercial Vehicle Group | LG Electronics vs. Hochschild Mining plc | LG Electronics vs. CONTAGIOUS GAMING INC |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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