Correlation Between BIT Computer and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both BIT Computer 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 BIT Computer and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Netmarble Games Corp, you can compare the effects of market volatilities on BIT Computer 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 BIT Computer with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Netmarble Games.
Diversification Opportunities for BIT Computer and Netmarble Games
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIT and Netmarble is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co 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 BIT Computer 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 BIT Computer Co 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 BIT Computer i.e., BIT Computer and Netmarble Games go up and down completely randomly.
Pair Corralation between BIT Computer and Netmarble Games
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 0.65 times more return on investment than Netmarble Games. However, BIT Computer Co is 1.53 times less risky than Netmarble Games. It trades about 0.02 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.16 per unit of risk. If you would invest 485,500 in BIT Computer Co on December 1, 2024 and sell it today you would earn a total of 2,000 from holding BIT Computer Co or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Netmarble Games Corp
Performance |
| Timeline |
| BIT Computer |
| Netmarble Games Corp |
BIT Computer and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Netmarble Games
The main advantage of trading using opposite BIT Computer and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer 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.| BIT Computer vs. Tway Air Co | BIT Computer vs. Lotte Chilsung Beverage | BIT Computer vs. ITM Semiconductor Co | BIT Computer vs. Cloud Air CoLtd |
| Netmarble Games vs. Haitai Confectionery Foods | Netmarble Games vs. Shinsegae Food | Netmarble Games vs. Hyundai Green Food | Netmarble Games vs. Green Cross Medical |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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