Correlation Between Dongil Metal and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Dongil Metal 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 Dongil Metal and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and Netmarble Games Corp, you can compare the effects of market volatilities on Dongil Metal 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 Dongil Metal with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Netmarble Games.
Diversification Opportunities for Dongil Metal and Netmarble Games
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongil and Netmarble is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal 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 Dongil Metal 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 Dongil Metal 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 Dongil Metal i.e., Dongil Metal and Netmarble Games go up and down completely randomly.
Pair Corralation between Dongil Metal and Netmarble Games
Assuming the 90 days trading horizon Dongil Metal Co is expected to generate 0.34 times more return on investment than Netmarble Games. However, Dongil Metal Co is 2.98 times less risky than Netmarble Games. It trades about -0.2 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.32 per unit of risk. If you would invest 866,000 in Dongil Metal Co on August 27, 2024 and sell it today you would lose (26,000) from holding Dongil Metal Co or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Netmarble Games Corp
Performance |
| Timeline |
| Dongil Metal |
| Netmarble Games Corp |
Dongil Metal and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Netmarble Games
The main advantage of trading using opposite Dongil Metal and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal 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.| Dongil Metal vs. LG Chemicals | Dongil Metal vs. Lotte Chemical Corp | Dongil Metal vs. Hyundai Steel | Dongil Metal vs. Seah Steel Corp |
| Netmarble Games vs. AfreecaTV Co | Netmarble Games vs. SS TECH | Netmarble Games vs. Busan Industrial Co | Netmarble Games vs. Busan Ind |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |