Correlation Between Kongzhong Corp and Electronic Arts
Can any of the company-specific risk be diversified away by investing in both Kongzhong Corp and Electronic Arts 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 Kongzhong Corp and Electronic Arts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kongzhong Corp and Electronic Arts, you can compare the effects of market volatilities on Kongzhong Corp and Electronic Arts 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 Kongzhong Corp with a short position of Electronic Arts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kongzhong Corp and Electronic Arts.
Diversification Opportunities for Kongzhong Corp and Electronic Arts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kongzhong and Electronic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kongzhong Corp and Electronic Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Arts and Kongzhong Corp 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 Kongzhong Corp are associated (or correlated) with Electronic Arts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Arts has no effect on the direction of Kongzhong Corp i.e., Kongzhong Corp and Electronic Arts go up and down completely randomly.
Pair Corralation between Kongzhong Corp and Electronic Arts
If you would invest 12,616 in Electronic Arts on January 20, 2024 and sell it today you would lose (53.00) from holding Electronic Arts or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kongzhong Corp vs. Electronic Arts
Performance |
| Timeline |
| Kongzhong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Electronic Arts |
Kongzhong Corp and Electronic Arts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kongzhong Corp and Electronic Arts
The main advantage of trading using opposite Kongzhong Corp and Electronic Arts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kongzhong Corp position performs unexpectedly, Electronic Arts 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 Electronic Arts will offset losses from the drop in Electronic Arts' long position.| Kongzhong Corp vs. Valhi Inc | Kongzhong Corp vs. Fast Retailing Co | Kongzhong Corp vs. Air Products and | Kongzhong Corp vs. Yips Chemical Holdings |
| Electronic Arts vs. Nintendo Co ADR | Electronic Arts vs. Playtika Holding Corp | Electronic Arts vs. Doubledown InteractiveCo |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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