Correlation Between SPARTAN STORES and GungHo Online
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES 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 SPARTAN STORES and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and GungHo Online Entertainment, you can compare the effects of market volatilities on SPARTAN STORES 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 SPARTAN STORES with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and GungHo Online.
Diversification Opportunities for SPARTAN STORES and GungHo Online
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPARTAN and GungHo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES i.e., SPARTAN STORES and GungHo Online go up and down completely randomly.
Pair Corralation between SPARTAN STORES and GungHo Online
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the GungHo Online. But the stock apears to be less risky and, when comparing its historical volatility, SPARTAN STORES is 1.08 times less risky than GungHo Online. The stock trades about -0.04 of its potential returns per unit of risk. The GungHo Online Entertainment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,450 in GungHo Online Entertainment on September 2, 2024 and sell it today you would earn a total of 390.00 from holding GungHo Online Entertainment or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. GungHo Online Entertainment
Performance |
| Timeline |
| SPARTAN STORES |
| GungHo Online Entert |
SPARTAN STORES and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and GungHo Online
The main advantage of trading using opposite SPARTAN STORES and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES 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.| SPARTAN STORES vs. SIVERS SEMICONDUCTORS AB | SPARTAN STORES vs. Darden Restaurants | SPARTAN STORES vs. Reliance Steel Aluminum | SPARTAN STORES vs. Q2M Managementberatung AG |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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