Correlation Between INFINITT Healthcare and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare 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 INFINITT Healthcare and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFINITT Healthcare Co and Netmarble Games Corp, you can compare the effects of market volatilities on INFINITT Healthcare 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 INFINITT Healthcare with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Netmarble Games.
Diversification Opportunities for INFINITT Healthcare and Netmarble Games
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INFINITT and Netmarble is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare 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 INFINITT Healthcare 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 INFINITT Healthcare 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 INFINITT Healthcare i.e., INFINITT Healthcare and Netmarble Games go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Netmarble Games
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.6 times more return on investment than Netmarble Games. However, INFINITT Healthcare Co is 1.66 times less risky than Netmarble Games. It trades about 0.14 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.12 per unit of risk. If you would invest 427,500 in INFINITT Healthcare Co on September 1, 2024 and sell it today you would earn a total of 22,500 from holding INFINITT Healthcare Co or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Netmarble Games Corp
Performance |
| Timeline |
| INFINITT Healthcare |
| Netmarble Games Corp |
INFINITT Healthcare and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Netmarble Games
The main advantage of trading using opposite INFINITT Healthcare and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare 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.| INFINITT Healthcare vs. Netmarble Games Corp | INFINITT Healthcare vs. Kukdong Oil Chemicals | INFINITT Healthcare vs. Miwon Chemicals Co | INFINITT Healthcare vs. TJ media Co |
| Netmarble Games vs. AfreecaTV Co | Netmarble Games vs. Seegene | Netmarble Games vs. SS TECH | Netmarble Games vs. Busan Industrial 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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