Correlation Between ULTRA CLEAN and GungHo Online
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and GungHo Online Entertainment, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and GungHo Online.
Diversification Opportunities for ULTRA CLEAN and GungHo Online
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ULTRA and GungHo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS 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 ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 ULTRA CLEAN i.e., ULTRA CLEAN and GungHo Online go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and GungHo Online
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to under-perform the GungHo Online. In addition to that, ULTRA CLEAN is 1.39 times more volatile than GungHo Online Entertainment. It trades about -0.02 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.1 per unit of volatility. If you would invest 1,340 in GungHo Online Entertainment on September 3, 2024 and sell it today you would earn a total of 500.00 from holding GungHo Online Entertainment or generate 37.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. GungHo Online Entertainment
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| GungHo Online Entert |
ULTRA CLEAN and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and GungHo Online
The main advantage of trading using opposite ULTRA CLEAN and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. TOTAL GABON | ULTRA CLEAN vs. Walgreens Boots Alliance | ULTRA CLEAN vs. Peak Resources Limited |
| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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