Correlation Between IC Technology and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both IC Technology 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 IC Technology and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IC Technology Co and Netmarble Games Corp, you can compare the effects of market volatilities on IC Technology 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 IC Technology with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of IC Technology and Netmarble Games.
Diversification Opportunities for IC Technology and Netmarble Games
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 052860 and Netmarble is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding IC Technology 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 IC Technology 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 IC Technology 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 IC Technology i.e., IC Technology and Netmarble Games go up and down completely randomly.
Pair Corralation between IC Technology and Netmarble Games
Assuming the 90 days trading horizon IC Technology Co is expected to generate 1.71 times more return on investment than Netmarble Games. However, IC Technology is 1.71 times more volatile than Netmarble Games Corp. It trades about 0.19 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.03 per unit of risk. If you would invest 170,000 in IC Technology Co on September 13, 2024 and sell it today you would earn a total of 72,500 from holding IC Technology Co or generate 42.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IC Technology Co vs. Netmarble Games Corp
Performance |
| Timeline |
| IC Technology |
| Netmarble Games Corp |
IC Technology and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IC Technology and Netmarble Games
The main advantage of trading using opposite IC Technology and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IC Technology 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.| IC Technology vs. Digital Power Communications | IC Technology vs. Hannong Chemicals | IC Technology vs. ECSTELECOM Co | IC Technology vs. Namhae Chemical |
| Netmarble Games vs. Seoul Semiconductor Co | Netmarble Games vs. LAKE MATERIALS LTD | Netmarble Games vs. ABOV Semiconductor Co | Netmarble Games vs. INNOX Advanced Materials |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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