Correlation Between GungHo Online and Public Storage
Can any of the company-specific risk be diversified away by investing in both GungHo Online and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on GungHo Online and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Public Storage.
Diversification Opportunities for GungHo Online and Public Storage
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Public is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of GungHo Online i.e., GungHo Online and Public Storage go up and down completely randomly.
Pair Corralation between GungHo Online and Public Storage
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.25 times more return on investment than Public Storage. However, GungHo Online is 1.25 times more volatile than Public Storage. It trades about 0.18 of its potential returns per unit of risk. Public Storage is currently generating about -0.3 per unit of risk. If you would invest 1,790 in GungHo Online Entertainment on September 25, 2024 and sell it today you would earn a total of 140.00 from holding GungHo Online Entertainment or generate 7.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GungHo Online Entertainment vs. Public Storage
Performance |
Timeline |
GungHo Online Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Public Storage |
GungHo Online and Public Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GungHo Online and Public Storage
The main advantage of trading using opposite GungHo Online and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.GungHo Online vs. Lifeway Foods | GungHo Online vs. Harmony Gold Mining | GungHo Online vs. Tyson Foods | GungHo Online vs. GEELY AUTOMOBILE |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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