Correlation Between Iljin Display and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Iljin Display 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 Iljin Display and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Netmarble Games Corp, you can compare the effects of market volatilities on Iljin Display 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 Iljin Display with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Netmarble Games.
Diversification Opportunities for Iljin Display and Netmarble Games
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iljin and Netmarble is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display 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 Iljin Display 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 Iljin Display 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 Iljin Display i.e., Iljin Display and Netmarble Games go up and down completely randomly.
Pair Corralation between Iljin Display and Netmarble Games
Assuming the 90 days trading horizon Iljin Display is expected to under-perform the Netmarble Games. But the stock apears to be less risky and, when comparing its historical volatility, Iljin Display is 1.48 times less risky than Netmarble Games. The stock trades about -0.06 of its potential returns per unit of risk. The Netmarble Games Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5,800,000 in Netmarble Games Corp on September 3, 2024 and sell it today you would lose (500,000) from holding Netmarble Games Corp or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. Netmarble Games Corp
Performance |
| Timeline |
| Iljin Display |
| Netmarble Games Corp |
Iljin Display and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and Netmarble Games
The main advantage of trading using opposite Iljin Display and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display 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.| Iljin Display vs. Hankook Steel Co | Iljin Display vs. Genie Music | Iljin Display vs. Korea Shipbuilding Offshore | Iljin Display vs. Hanil Iron Steel |
| Netmarble Games vs. Seoul Food Industrial | Netmarble Games vs. Foodnamoo | Netmarble Games vs. KB Financial Group | Netmarble Games vs. FOODWELL 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |