Correlation Between GenoFocus and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both GenoFocus 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 GenoFocus and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GenoFocus and Netmarble Games Corp, you can compare the effects of market volatilities on GenoFocus 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 GenoFocus with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of GenoFocus and Netmarble Games.
Diversification Opportunities for GenoFocus and Netmarble Games
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GenoFocus and Netmarble is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GenoFocus 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 GenoFocus 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 GenoFocus 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 GenoFocus i.e., GenoFocus and Netmarble Games go up and down completely randomly.
Pair Corralation between GenoFocus and Netmarble Games
Assuming the 90 days trading horizon GenoFocus is expected to generate 3.86 times less return on investment than Netmarble Games. In addition to that, GenoFocus is 1.41 times more volatile than Netmarble Games Corp. It trades about 0.03 of its total potential returns per unit of risk. Netmarble Games Corp is currently generating about 0.14 per unit of volatility. If you would invest 5,040,000 in Netmarble Games Corp on September 13, 2024 and sell it today you would earn a total of 470,000 from holding Netmarble Games Corp or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GenoFocus vs. Netmarble Games Corp
Performance |
| Timeline |
| GenoFocus |
| Netmarble Games Corp |
GenoFocus and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GenoFocus and Netmarble Games
The main advantage of trading using opposite GenoFocus and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GenoFocus 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.| GenoFocus vs. LG Chemicals | GenoFocus vs. POSCO Holdings | GenoFocus vs. Hanwha Solutions | GenoFocus vs. Lotte Chemical Corp |
| Netmarble Games vs. Seoul Semiconductor Co | Netmarble Games vs. LAKE MATERIALS LTD | Netmarble Games vs. ABOV Semiconductor Co | Netmarble Games vs. INNOX Advanced Materials |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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