Correlation Between Finebesteel and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Finebesteel 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 Finebesteel and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finebesteel and Netmarble Games Corp, you can compare the effects of market volatilities on Finebesteel 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 Finebesteel with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finebesteel and Netmarble Games.
Diversification Opportunities for Finebesteel and Netmarble Games
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finebesteel and Netmarble is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Finebesteel 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 Finebesteel 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 Finebesteel 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 Finebesteel i.e., Finebesteel and Netmarble Games go up and down completely randomly.
Pair Corralation between Finebesteel and Netmarble Games
Assuming the 90 days trading horizon Finebesteel is expected to generate 1.66 times more return on investment than Netmarble Games. However, Finebesteel is 1.66 times more volatile than Netmarble Games Corp. It trades about 0.27 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.51 per unit of risk. If you would invest 92,600 in Finebesteel on November 4, 2024 and sell it today you would earn a total of 13,900 from holding Finebesteel or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finebesteel vs. Netmarble Games Corp
Performance |
| Timeline |
| Finebesteel |
| Netmarble Games Corp |
Finebesteel and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finebesteel and Netmarble Games
The main advantage of trading using opposite Finebesteel and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finebesteel 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.| Finebesteel vs. Camus Engineering Construction | Finebesteel vs. SEOJEON ELECTRIC MACHINERY | Finebesteel vs. Woori Technology | Finebesteel vs. KEPCO Engineering Construction |
| Netmarble Games vs. Samlip General Foods | Netmarble Games vs. Hankukpackage Co | Netmarble Games vs. NICE Information Service | Netmarble Games vs. Lotte Fine Chemical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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