Correlation Between Ssangyong Materials and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Ssangyong Materials 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 Ssangyong Materials and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Materials Corp and Netmarble Games Corp, you can compare the effects of market volatilities on Ssangyong Materials 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 Ssangyong Materials with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Materials and Netmarble Games.
Diversification Opportunities for Ssangyong Materials and Netmarble Games
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ssangyong and Netmarble is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Materials Corp 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 Ssangyong Materials 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 Ssangyong Materials Corp 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 Ssangyong Materials i.e., Ssangyong Materials and Netmarble Games go up and down completely randomly.
Pair Corralation between Ssangyong Materials and Netmarble Games
Assuming the 90 days trading horizon Ssangyong Materials Corp is expected to generate 1.1 times more return on investment than Netmarble Games. However, Ssangyong Materials is 1.1 times more volatile than Netmarble Games Corp. It trades about 0.25 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.02 per unit of risk. If you would invest 206,500 in Ssangyong Materials Corp on October 10, 2024 and sell it today you would earn a total of 26,000 from holding Ssangyong Materials Corp or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Materials Corp vs. Netmarble Games Corp
Performance |
| Timeline |
| Ssangyong Materials Corp |
| Netmarble Games Corp |
Ssangyong Materials and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Materials and Netmarble Games
The main advantage of trading using opposite Ssangyong Materials and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Materials 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.| Ssangyong Materials vs. Haitai Confectionery Foods | Ssangyong Materials vs. Hotel Shilla Co | Ssangyong Materials vs. Shinsegae Food | Ssangyong Materials vs. Organic Special Pet |
| Netmarble Games vs. Hwangkum Steel Technology | Netmarble Games vs. Eugene Technology CoLtd | Netmarble Games vs. RF Materials Co | Netmarble Games vs. Lake Materials 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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