Correlation Between HB Technology and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both HB 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 HB 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 HB Technology TD and Netmarble Games Corp, you can compare the effects of market volatilities on HB 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 HB Technology with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Netmarble Games.
Diversification Opportunities for HB Technology and Netmarble Games
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 078150 and Netmarble is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD 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 HB 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 HB Technology TD 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 HB Technology i.e., HB Technology and Netmarble Games go up and down completely randomly.
Pair Corralation between HB Technology and Netmarble Games
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.67 times more return on investment than Netmarble Games. However, HB Technology is 1.67 times more volatile than Netmarble Games Corp. It trades about 0.08 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.09 per unit of risk. If you would invest 225,000 in HB Technology TD on November 8, 2024 and sell it today you would earn a total of 38,500 from holding HB Technology TD or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Netmarble Games Corp
Performance |
| Timeline |
| HB Technology TD |
| Netmarble Games Corp |
HB Technology and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Netmarble Games
The main advantage of trading using opposite HB Technology and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB 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.| HB Technology vs. Sangsin Energy Display | HB Technology vs. Playgram Co | HB Technology vs. Shinhan Inverse Silver | HB Technology vs. Daishin Information Communications |
| Netmarble Games vs. Aprogen Healthcare Games | Netmarble Games vs. ENF Technology Co | Netmarble Games vs. KG Eco Technology | Netmarble Games vs. Eugene Technology CoLtd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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