Correlation Between 51Talk Online and GungHo Online

Can any of the company-specific risk be diversified away by investing in both 51Talk Online 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 51Talk Online and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 51Talk Online Education and GungHo Online Entertainment, you can compare the effects of market volatilities on 51Talk Online 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 51Talk Online with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and GungHo Online.

Diversification Opportunities for 51Talk Online and GungHo Online

-0.23

Correlation Coefficient

51Talk Online  GungHo Online

Very good diversification

The 3 months correlation between 51Talk and GungHo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education 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 51Talk Online 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 51Talk Online Education 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 51Talk Online i.e., 51Talk Online and GungHo Online go up and down completely randomly.

Pair Corralation between 51Talk Online and GungHo Online

If you would invest  0.00  in GungHo Online Entertainment on January 26, 2024 and sell it today you would earn a total of  0.00  from holding GungHo Online Entertainment or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

51Talk Online Education  vs.  GungHo Online Entertainment

51Talk Online Education

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 51Talk Online Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 51Talk Online is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

GungHo Online Entert

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GungHo Online Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with 51Talk Online and GungHo Online

The main advantage of trading using opposite 51Talk Online and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online 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.

The idea behind 51Talk Online Education and GungHo Online Entertainment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.