Correlation Between Champion Gaming and Kingboard Chemical
Can any of the company-specific risk be diversified away by investing in both Champion Gaming and Kingboard Chemical 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 Champion Gaming and Kingboard Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Gaming Group and Kingboard Chemical Holdings, you can compare the effects of market volatilities on Champion Gaming and Kingboard Chemical 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 Champion Gaming with a short position of Kingboard Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Gaming and Kingboard Chemical.
Diversification Opportunities for Champion Gaming and Kingboard Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champion and Kingboard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Champion Gaming Group and Kingboard Chemical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingboard Chemical and Champion 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 Champion Gaming Group are associated (or correlated) with Kingboard Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingboard Chemical has no effect on the direction of Champion Gaming i.e., Champion Gaming and Kingboard Chemical go up and down completely randomly.
Pair Corralation between Champion Gaming and Kingboard Chemical
Assuming the 90 days horizon Champion Gaming Group is expected to under-perform the Kingboard Chemical. In addition to that, Champion Gaming is 41.18 times more volatile than Kingboard Chemical Holdings. It trades about -0.23 of its total potential returns per unit of risk. Kingboard Chemical Holdings is currently generating about 0.23 per unit of volatility. If you would invest 1,139 in Kingboard Chemical Holdings on October 13, 2024 and sell it today you would earn a total of 26.00 from holding Kingboard Chemical Holdings or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champion Gaming Group vs. Kingboard Chemical Holdings
Performance |
| Timeline |
| Champion Gaming Group |
| Kingboard Chemical |
Champion Gaming and Kingboard Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Gaming and Kingboard Chemical
The main advantage of trading using opposite Champion Gaming and Kingboard Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Gaming position performs unexpectedly, Kingboard Chemical 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 Kingboard Chemical will offset losses from the drop in Kingboard Chemical's long position.| Champion Gaming vs. Global Net Lease | Champion Gaming vs. Vestis | Champion Gaming vs. Willis Lease Finance | Champion Gaming vs. Yuexiu Transport Infrastructure |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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