Correlation Between Kongzhong Corp and Discovery
Can any of the company-specific risk be diversified away by investing in both Kongzhong Corp and Discovery 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 Kongzhong Corp and Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kongzhong Corp and Discovery, you can compare the effects of market volatilities on Kongzhong Corp and Discovery 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 Kongzhong Corp with a short position of Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kongzhong Corp and Discovery.
Diversification Opportunities for Kongzhong Corp and Discovery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kongzhong and Discovery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kongzhong Corp and Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discovery and Kongzhong Corp 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 Kongzhong Corp are associated (or correlated) with Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discovery has no effect on the direction of Kongzhong Corp i.e., Kongzhong Corp and Discovery go up and down completely randomly.
Pair Corralation between Kongzhong Corp and Discovery
If you would invest (100.00) in Discovery on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Discovery or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kongzhong Corp vs. Discovery
Performance |
Timeline |
Kongzhong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kongzhong Corp and Discovery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kongzhong Corp and Discovery
The main advantage of trading using opposite Kongzhong Corp and Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kongzhong Corp position performs unexpectedly, Discovery 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 Discovery will offset losses from the drop in Discovery's long position.Kongzhong Corp vs. Valhi Inc | Kongzhong Corp vs. Fast Retailing Co | Kongzhong Corp vs. Air Products and | Kongzhong Corp vs. Yips Chemical Holdings |
Discovery vs. Anterix | Discovery vs. Iridium Communications | Discovery vs. Univest Pennsylvania | Discovery vs. Weibo Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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