Correlation Between GungHo Online and Wineco Productions
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Wineco Productions 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 GungHo Online and Wineco Productions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and Wineco Productions, you can compare the effects of market volatilities on GungHo Online and Wineco Productions 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 GungHo Online with a short position of Wineco Productions. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Wineco Productions.
Diversification Opportunities for GungHo Online and Wineco Productions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GungHo and Wineco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Wineco Productions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wineco Productions and GungHo 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 GungHo Online Entertainment are associated (or correlated) with Wineco Productions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wineco Productions has no effect on the direction of GungHo Online i.e., GungHo Online and Wineco Productions go up and down completely randomly.
Pair Corralation between GungHo Online and Wineco Productions
If you would invest 0.01 in Wineco Productions on January 25, 2024 and sell it today you would earn a total of 0.00 from holding Wineco Productions or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GungHo Online Entertainment vs. Wineco Productions
Performance |
Timeline |
GungHo Online Entert |
Wineco Productions |
GungHo Online and Wineco Productions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GungHo Online and Wineco Productions
The main advantage of trading using opposite GungHo Online and Wineco Productions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Wineco Productions 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 Wineco Productions will offset losses from the drop in Wineco Productions' long position.GungHo Online vs. CD Projekt SA | GungHo Online vs. Playtika Holding Corp | GungHo Online vs. Golden Matrix Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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