Correlation Between NICE Information and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both NICE Information 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 NICE Information and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Netmarble Games Corp, you can compare the effects of market volatilities on NICE Information 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 NICE Information with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Netmarble Games.
Diversification Opportunities for NICE Information and Netmarble Games
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NICE and Netmarble is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service 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 NICE Information 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 NICE Information Service 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 NICE Information i.e., NICE Information and Netmarble Games go up and down completely randomly.
Pair Corralation between NICE Information and Netmarble Games
Assuming the 90 days trading horizon NICE Information Service is expected to generate 0.7 times more return on investment than Netmarble Games. However, NICE Information Service is 1.44 times less risky than Netmarble Games. It trades about 0.01 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about 0.0 per unit of risk. If you would invest 1,184,850 in NICE Information Service on November 6, 2024 and sell it today you would earn a total of 42,150 from holding NICE Information Service or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Netmarble Games Corp
Performance |
| Timeline |
| NICE Information Service |
| Netmarble Games Corp |
NICE Information and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Netmarble Games
The main advantage of trading using opposite NICE Information and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information 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.| NICE Information vs. SCI Information Service | NICE Information vs. Lotte Data Communication | NICE Information vs. Seoul Electronics Telecom | NICE Information vs. Kisan Telecom Co |
| Netmarble Games vs. Digital Power Communications | Netmarble Games vs. Korea Information Communications | Netmarble Games vs. Kisan Telecom Co | 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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