Correlation Between NorAm Drilling and GungHo Online
Can any of the company-specific risk be diversified away by investing in both NorAm Drilling 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 NorAm Drilling and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NorAm Drilling AS and GungHo Online Entertainment, you can compare the effects of market volatilities on NorAm Drilling 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 NorAm Drilling with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorAm Drilling and GungHo Online.
Diversification Opportunities for NorAm Drilling and GungHo Online
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between NorAm and GungHo is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NorAm Drilling AS 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 NorAm Drilling 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 NorAm Drilling AS 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 NorAm Drilling i.e., NorAm Drilling and GungHo Online go up and down completely randomly.
Pair Corralation between NorAm Drilling and GungHo Online
Assuming the 90 days trading horizon NorAm Drilling AS is expected to generate 1.41 times more return on investment than GungHo Online. However, NorAm Drilling is 1.41 times more volatile than GungHo Online Entertainment. It trades about 0.17 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.06 per unit of risk. If you would invest 65.00 in NorAm Drilling AS on September 14, 2024 and sell it today you would earn a total of 229.00 from holding NorAm Drilling AS or generate 352.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NorAm Drilling AS vs. GungHo Online Entertainment
Performance |
| Timeline |
| NorAm Drilling AS |
| GungHo Online Entert |
NorAm Drilling and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NorAm Drilling and GungHo Online
The main advantage of trading using opposite NorAm Drilling and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorAm Drilling 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.| NorAm Drilling vs. Apple Inc | NorAm Drilling vs. Apple Inc | NorAm Drilling vs. Apple Inc | NorAm Drilling vs. Apple Inc |
| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |