Correlation Between SLR Investment and GungHo Online
Can any of the company-specific risk be diversified away by investing in both SLR Investment 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 SLR Investment and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and GungHo Online Entertainment, you can compare the effects of market volatilities on SLR Investment 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 SLR Investment with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and GungHo Online.
Diversification Opportunities for SLR Investment and GungHo Online
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SLR and GungHo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp 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 SLR Investment 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 SLR Investment Corp 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 SLR Investment i.e., SLR Investment and GungHo Online go up and down completely randomly.
Pair Corralation between SLR Investment and GungHo Online
Assuming the 90 days horizon SLR Investment is expected to generate 1.7 times less return on investment than GungHo Online. But when comparing it to its historical volatility, SLR Investment Corp is 1.73 times less risky than GungHo Online. It trades about 0.06 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,620 in GungHo Online Entertainment on September 3, 2024 and sell it today you would earn a total of 220.00 from holding GungHo Online Entertainment or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. GungHo Online Entertainment
Performance |
| Timeline |
| SLR Investment Corp |
| GungHo Online Entert |
SLR Investment and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and GungHo Online
The main advantage of trading using opposite SLR Investment and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment 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.| SLR Investment vs. Blackstone Group | SLR Investment vs. BlackRock | SLR Investment vs. The Bank of | SLR Investment vs. Ameriprise Financial |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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