Correlation Between Kg Chemical and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Kg Chemical and Netmarble Games 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 Kg Chemical and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kg Chemical and Netmarble Games Corp, you can compare the effects of market volatilities on Kg Chemical and Netmarble Games 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 Kg Chemical with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kg Chemical and Netmarble Games.
Diversification Opportunities for Kg Chemical and Netmarble Games
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 001390 and Netmarble is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kg Chemical and Netmarble Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netmarble Games Corp and Kg Chemical 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 Kg Chemical are associated (or correlated) with Netmarble Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netmarble Games Corp has no effect on the direction of Kg Chemical i.e., Kg Chemical and Netmarble Games go up and down completely randomly.
Pair Corralation between Kg Chemical and Netmarble Games
Assuming the 90 days trading horizon Kg Chemical is expected to under-perform the Netmarble Games. But the stock apears to be less risky and, when comparing its historical volatility, Kg Chemical is 1.38 times less risky than Netmarble Games. The stock trades about -0.09 of its potential returns per unit of risk. The Netmarble Games Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,100,000 in Netmarble Games Corp on November 3, 2024 and sell it today you would lose (1,670,000) from holding Netmarble Games Corp or give up 27.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kg Chemical vs. Netmarble Games Corp
Performance |
| Timeline |
| Kg Chemical |
| Netmarble Games Corp |
Kg Chemical and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kg Chemical and Netmarble Games
The main advantage of trading using opposite Kg Chemical and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kg Chemical position performs unexpectedly, Netmarble Games 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 Netmarble Games will offset losses from the drop in Netmarble Games' long position.| Kg Chemical vs. Lion Chemtech Co | Kg Chemical vs. Narae Nanotech Corp | Kg Chemical vs. PH Tech Co | Kg Chemical vs. Lake Materials Co |
| Netmarble Games vs. Samlip General Foods | Netmarble Games vs. Jinro Distillers Co | Netmarble Games vs. Samsung Life Insurance | Netmarble Games vs. YeaRimDang Publishing Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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