Correlation Between Shinhan Financial and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial 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 Shinhan Financial and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Financial Group and Netmarble Games Corp, you can compare the effects of market volatilities on Shinhan Financial 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 Shinhan Financial with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Netmarble Games.
Diversification Opportunities for Shinhan Financial and Netmarble Games
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinhan and Netmarble is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group 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 Shinhan Financial 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 Shinhan Financial Group 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 Shinhan Financial i.e., Shinhan Financial and Netmarble Games go up and down completely randomly.
Pair Corralation between Shinhan Financial and Netmarble Games
Assuming the 90 days trading horizon Shinhan Financial Group is expected to under-perform the Netmarble Games. But the stock apears to be less risky and, when comparing its historical volatility, Shinhan Financial Group is 1.16 times less risky than Netmarble Games. The stock trades about -0.21 of its potential returns per unit of risk. The Netmarble Games Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 5,340,000 in Netmarble Games Corp on September 24, 2024 and sell it today you would lose (50,000) from holding Netmarble Games Corp or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shinhan Financial Group vs. Netmarble Games Corp
Performance |
| Timeline |
| Shinhan Financial |
| Netmarble Games Corp |
Shinhan Financial and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Netmarble Games
The main advantage of trading using opposite Shinhan Financial and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial 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.| Shinhan Financial vs. KB Financial Group | Shinhan Financial vs. Hyundai Motor | Shinhan Financial vs. Hyundai Motor Co | Shinhan Financial vs. Hyundai Motor Co |
| Netmarble Games vs. Samsung Electronics Co | Netmarble Games vs. Samsung Electronics Co | Netmarble Games vs. KB Financial Group | Netmarble Games vs. Shinhan Financial Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |