Correlation Between Eugene Technology and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Eugene 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 Eugene 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 Eugene Technology CoLtd and Netmarble Games Corp, you can compare the effects of market volatilities on Eugene 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 Eugene Technology with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Netmarble Games.
Diversification Opportunities for Eugene Technology and Netmarble Games
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eugene and Netmarble is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd 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 Eugene 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 Eugene Technology CoLtd 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 Eugene Technology i.e., Eugene Technology and Netmarble Games go up and down completely randomly.
Pair Corralation between Eugene Technology and Netmarble Games
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 1.61 times more return on investment than Netmarble Games. However, Eugene Technology is 1.61 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 -0.07 per unit of risk. If you would invest 3,380,000 in Eugene Technology CoLtd on October 11, 2024 and sell it today you would earn a total of 415,000 from holding Eugene Technology CoLtd or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. Netmarble Games Corp
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Netmarble Games Corp |
Eugene Technology and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Netmarble Games
The main advantage of trading using opposite Eugene Technology and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene 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.| Eugene Technology vs. Hankukpackage Co | Eugene Technology vs. Drb Industrial | Eugene Technology vs. Samlip General Foods | Eugene Technology vs. Seoyon Topmetal Co |
| Netmarble Games vs. Asiana Airlines | Netmarble Games vs. Koryo Credit Information | Netmarble Games vs. CU Medical Systems | Netmarble Games vs. Sewoon Medical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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