Correlation Between HomeToGo and GungHo Online
Can any of the company-specific risk be diversified away by investing in both HomeToGo 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 HomeToGo and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeToGo SE and GungHo Online Entertainment, you can compare the effects of market volatilities on HomeToGo 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 HomeToGo with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeToGo and GungHo Online.
Diversification Opportunities for HomeToGo and GungHo Online
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between HomeToGo and GungHo is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding HomeToGo SE 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 HomeToGo 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 HomeToGo SE 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 HomeToGo i.e., HomeToGo and GungHo Online go up and down completely randomly.
Pair Corralation between HomeToGo and GungHo Online
Assuming the 90 days trading horizon HomeToGo SE is expected to generate 1.47 times more return on investment than GungHo Online. However, HomeToGo is 1.47 times more volatile than GungHo Online Entertainment. It trades about 0.01 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.03 per unit of risk. If you would invest 210.00 in HomeToGo SE on October 21, 2024 and sell it today you would lose (3.00) from holding HomeToGo SE or give up 1.43% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
HomeToGo SE vs. GungHo Online Entertainment
Performance |
Timeline |
HomeToGo SE |
GungHo Online Entert |
HomeToGo and GungHo Online Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HomeToGo and GungHo Online
The main advantage of trading using opposite HomeToGo and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeToGo 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.HomeToGo vs. The Japan Steel | HomeToGo vs. United States Steel | HomeToGo vs. COPLAND ROAD CAPITAL | HomeToGo vs. Texas Roadhouse |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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