Correlation Between Electronic Arts and Kongzhong Corp
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and Kongzhong Corp 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 Electronic Arts and Kongzhong Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and Kongzhong Corp, you can compare the effects of market volatilities on Electronic Arts and Kongzhong Corp 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 Electronic Arts with a short position of Kongzhong Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and Kongzhong Corp.
Diversification Opportunities for Electronic Arts and Kongzhong Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and Kongzhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and Kongzhong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kongzhong Corp and Electronic Arts 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 Electronic Arts are associated (or correlated) with Kongzhong Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kongzhong Corp has no effect on the direction of Electronic Arts i.e., Electronic Arts and Kongzhong Corp go up and down completely randomly.
Pair Corralation between Electronic Arts and Kongzhong Corp
If you would invest (100.00) in Kongzhong Corp on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Kongzhong Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electronic Arts vs. Kongzhong Corp
Performance |
| Timeline |
| Electronic Arts |
| Kongzhong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electronic Arts and Kongzhong Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and Kongzhong Corp
The main advantage of trading using opposite Electronic Arts and Kongzhong Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, Kongzhong Corp 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 Kongzhong Corp will offset losses from the drop in Kongzhong Corp's long position.| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Playtika Holding Corp | Electronic Arts vs. Doubledown InteractiveCo |
| Kongzhong Corp vs. FormFactor | Kongzhong Corp vs. Allient | Kongzhong Corp vs. Emerson Radio | Kongzhong Corp vs. Renesas Electronics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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