Correlation Between CONTAGIOUS GAMING and China International
Can any of the company-specific risk be diversified away by investing in both CONTAGIOUS GAMING and China International 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 China International 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 China International Marine, you can compare the effects of market volatilities on CONTAGIOUS GAMING and China International 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONTAGIOUS GAMING and China International.
Diversification Opportunities for CONTAGIOUS GAMING and China International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONTAGIOUS and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONTAGIOUS GAMING INC and China International Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of CONTAGIOUS GAMING i.e., CONTAGIOUS GAMING and China International go up and down completely randomly.
Pair Corralation between CONTAGIOUS GAMING and China International
If you would invest 0.30 in CONTAGIOUS GAMING INC on October 28, 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 | 97.44% |
| Values | Daily Returns |
CONTAGIOUS GAMING INC vs. China International Marine
Performance |
| Timeline |
| CONTAGIOUS GAMING INC |
| China International |
CONTAGIOUS GAMING and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONTAGIOUS GAMING and China International
The main advantage of trading using opposite CONTAGIOUS GAMING and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONTAGIOUS GAMING position performs unexpectedly, China International 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 China International will offset losses from the drop in China International's long position.| CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. NEXON Co | CONTAGIOUS GAMING vs. Take Two Interactive Software | CONTAGIOUS GAMING vs. Aristocrat Leisure Limited |
| China International vs. Entravision Communications | China International vs. High Liner Foods | China International vs. Nomad Foods | China International vs. Iridium Communications |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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