Correlation Between GungHo Online and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both GungHo Online and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on GungHo Online and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and MCEWEN MINING.
Diversification Opportunities for GungHo Online and MCEWEN MINING
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GungHo and MCEWEN is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of GungHo Online i.e., GungHo Online and MCEWEN MINING go up and down completely randomly.
Pair Corralation between GungHo Online and MCEWEN MINING
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the MCEWEN MINING. But the stock apears to be less risky and, when comparing its historical volatility, GungHo Online Entertainment is 2.33 times less risky than MCEWEN MINING. The stock trades about -0.11 of its potential returns per unit of risk. The MCEWEN MINING INC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 695.00 in MCEWEN MINING INC on April 22, 2025 and sell it today you would earn a total of 255.00 from holding MCEWEN MINING INC or generate 36.69% 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. MCEWEN MINING INC
Performance |
Timeline |
GungHo Online Entert |
MCEWEN MINING INC |
GungHo Online and MCEWEN MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GungHo Online and MCEWEN MINING
The main advantage of trading using opposite GungHo Online and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.GungHo Online vs. SEALED AIR | GungHo Online vs. RYANAIR HLDGS ADR | GungHo Online vs. DELTA AIR LINES | GungHo Online vs. Sumitomo Mitsui Construction |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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