Correlation Between GungHo Online and 51Talk Online

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Can any of the company-specific risk be diversified away by investing in both GungHo Online and 51Talk Online 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 51Talk Online 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 51Talk Online Education, you can compare the effects of market volatilities on GungHo Online and 51Talk Online 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 51Talk Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and 51Talk Online.

Diversification Opportunities for GungHo Online and 51Talk Online

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GungHo and 51Talk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and 51Talk Online Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 51Talk Online Education 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 51Talk Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 51Talk Online Education has no effect on the direction of GungHo Online i.e., GungHo Online and 51Talk Online go up and down completely randomly.

Pair Corralation between GungHo Online and 51Talk Online

If you would invest  2,115  in GungHo Online Entertainment on September 8, 2025 and sell it today you would earn a total of  0.00  from holding GungHo Online Entertainment or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GungHo Online Entertainment  vs.  51Talk Online Education

 Performance 
       Timeline  
GungHo Online Entert 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days GungHo Online Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, GungHo Online is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
51Talk Online Education 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days 51Talk Online Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, 51Talk Online is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

GungHo Online and 51Talk Online Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GungHo Online and 51Talk Online

The main advantage of trading using opposite GungHo Online and 51Talk Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, 51Talk Online 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 51Talk Online will offset losses from the drop in 51Talk Online's long position.
The idea behind GungHo Online Entertainment and 51Talk Online Education 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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