Correlation Between Stewart Information and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Stewart Information 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 Stewart Information and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stewart Information Services and GungHo Online Entertainment, you can compare the effects of market volatilities on Stewart Information 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 Stewart Information with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stewart Information and GungHo Online.
Diversification Opportunities for Stewart Information and GungHo Online
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stewart and GungHo is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stewart Information Services 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 Stewart Information 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 Stewart Information Services 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 Stewart Information i.e., Stewart Information and GungHo Online go up and down completely randomly.
Pair Corralation between Stewart Information and GungHo Online
Assuming the 90 days horizon Stewart Information Services is expected to under-perform the GungHo Online. But the stock apears to be less risky and, when comparing its historical volatility, Stewart Information Services is 1.01 times less risky than GungHo Online. The stock trades about -0.1 of its potential returns per unit of risk. The GungHo Online Entertainment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,990 in GungHo Online Entertainment on November 3, 2024 and sell it today you would lose (10.00) from holding GungHo Online Entertainment or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stewart Information Services vs. GungHo Online Entertainment
Performance |
| Timeline |
| Stewart Information |
| GungHo Online Entert |
Stewart Information and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stewart Information and GungHo Online
The main advantage of trading using opposite Stewart Information and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stewart Information 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.| Stewart Information vs. URBAN OUTFITTERS | Stewart Information vs. Eidesvik Offshore ASA | Stewart Information vs. Transport International Holdings | Stewart Information vs. Broadcom |
| GungHo Online vs. PLANT VEDA FOODS | GungHo Online vs. Cal Maine Foods | GungHo Online vs. VARIOUS EATERIES LS | GungHo Online vs. Ebro Foods SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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