Correlation Between GungHo Online and STORAGEVAULT CANADA

Can any of the company-specific risk be diversified away by investing in both GungHo Online and STORAGEVAULT CANADA 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 STORAGEVAULT CANADA 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 STORAGEVAULT CANADA INC, you can compare the effects of market volatilities on GungHo Online and STORAGEVAULT CANADA 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 STORAGEVAULT CANADA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and STORAGEVAULT CANADA.

Diversification Opportunities for GungHo Online and STORAGEVAULT CANADA

-0.73

Correlation Coefficient

GungHo Online  STORAGEVAULT CANADA

Pay attention - limited upside

The 3 months correlation between GungHo and STORAGEVAULT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and STORAGEVAULT CANADA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORAGEVAULT CANADA INC 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 STORAGEVAULT CANADA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORAGEVAULT CANADA INC has no effect on the direction of GungHo Online i.e., GungHo Online and STORAGEVAULT CANADA go up and down completely randomly.

Pair Corralation between GungHo Online and STORAGEVAULT CANADA

Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the STORAGEVAULT CANADA. But the stock apears to be less risky and, when comparing its historical volatility, GungHo Online Entertainment is 1.39 times less risky than STORAGEVAULT CANADA. The stock trades about -0.11 of its potential returns per unit of risk. The STORAGEVAULT CANADA INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  224.00  in STORAGEVAULT CANADA INC on April 20, 2025 and sell it today you would earn a total of  28.00  from holding STORAGEVAULT CANADA INC or generate 12.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

GungHo Online Entertainment  vs.  STORAGEVAULT CANADA INC

GungHo Online Entert

Risk-Adjusted Performance

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 uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

STORAGEVAULT CANADA INC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in STORAGEVAULT CANADA INC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, STORAGEVAULT CANADA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GungHo Online and STORAGEVAULT CANADA

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

The idea behind GungHo Online Entertainment and STORAGEVAULT CANADA INC 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.