Correlation Between Gunkul Engineering and Moshi Moshi

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

By analyzing existing cross correlation between Gunkul Engineering Public and Moshi Moshi Retail, you can compare the effects of market volatilities on Gunkul Engineering and Moshi Moshi 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 Gunkul Engineering with a short position of Moshi Moshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Moshi Moshi.

Diversification Opportunities for Gunkul Engineering and Moshi Moshi

-0.18

Correlation Coefficient

Gunkul Engineering  Moshi Moshi

Good diversification

The 3 months correlation between Gunkul and Moshi is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Moshi Moshi Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moshi Moshi Retail and Gunkul Engineering 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 Gunkul Engineering Public are associated (or correlated) with Moshi Moshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moshi Moshi Retail has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Moshi Moshi go up and down completely randomly.

Pair Corralation between Gunkul Engineering and Moshi Moshi

Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Moshi Moshi. In addition to that, Gunkul Engineering is 1.03 times more volatile than Moshi Moshi Retail. It trades about -0.1 of its total potential returns per unit of risk. Moshi Moshi Retail is currently generating about 0.15 per unit of volatility. If you would invest  4,000  in Moshi Moshi Retail on September 12, 2024 and sell it today you would earn a total of  800.00  from holding Moshi Moshi Retail or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Gunkul Engineering Public  vs.  Moshi Moshi Retail

Gunkul Engineering Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gunkul Engineering Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Moshi Moshi Retail

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moshi Moshi Retail are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Moshi Moshi sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gunkul Engineering and Moshi Moshi

The main advantage of trading using opposite Gunkul Engineering and Moshi Moshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Moshi Moshi 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 Moshi Moshi will offset losses from the drop in Moshi Moshi's long position.

The idea behind Gunkul Engineering Public and Moshi Moshi Retail 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.