Correlation Between Samlip General and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Samlip General 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 Samlip General and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Netmarble Games Corp, you can compare the effects of market volatilities on Samlip General 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 Samlip General with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Netmarble Games.
Diversification Opportunities for Samlip General and Netmarble Games
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samlip and Netmarble is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods 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 Samlip General 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 Samlip General Foods 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 Samlip General i.e., Samlip General and Netmarble Games go up and down completely randomly.
Pair Corralation between Samlip General and Netmarble Games
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 1.34 times more return on investment than Netmarble Games. However, Samlip General is 1.34 times more volatile than Netmarble Games Corp. It trades about 0.07 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.35 per unit of risk. If you would invest 4,756,959 in Samlip General Foods on October 24, 2024 and sell it today you would earn a total of 128,041 from holding Samlip General Foods or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. Netmarble Games Corp
Performance |
| Timeline |
| Samlip General Foods |
| Netmarble Games Corp |
Samlip General and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and Netmarble Games
The main advantage of trading using opposite Samlip General and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General 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.| Samlip General vs. E Investment Development | Samlip General vs. Daejung Chemicals Metals | Samlip General vs. CKH Food Health | Samlip General vs. Lotte Chilsung Beverage |
| Netmarble Games vs. Inzi Display CoLtd | Netmarble Games vs. ITM Semiconductor Co | Netmarble Games vs. Korea Computer | Netmarble Games vs. Innowireless 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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