Correlation Between Netmarble Games and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Ssangyong Information 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 Netmarble Games and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netmarble Games Corp and Ssangyong Information Communication, you can compare the effects of market volatilities on Netmarble Games and Ssangyong Information 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 Netmarble Games with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Ssangyong Information.
Diversification Opportunities for Netmarble Games and Ssangyong Information
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netmarble and Ssangyong is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Netmarble Games 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 Netmarble Games Corp are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Netmarble Games i.e., Netmarble Games and Ssangyong Information go up and down completely randomly.
Pair Corralation between Netmarble Games and Ssangyong Information
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Ssangyong Information. But the stock apears to be less risky and, when comparing its historical volatility, Netmarble Games Corp is 2.52 times less risky than Ssangyong Information. The stock trades about -0.16 of its potential returns per unit of risk. The Ssangyong Information Communication is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 63,200 in Ssangyong Information Communication on December 1, 2024 and sell it today you would earn a total of 22,600 from holding Ssangyong Information Communication or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Ssangyong Information Communic
Performance |
| Timeline |
| Netmarble Games Corp |
| Ssangyong Information |
Netmarble Games and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Ssangyong Information
The main advantage of trading using opposite Netmarble Games and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Netmarble Games vs. Haitai Confectionery Foods | Netmarble Games vs. Shinsegae Food | Netmarble Games vs. Hyundai Green Food | Netmarble Games vs. Green Cross Medical |
| Ssangyong Information vs. Busan Industrial Co | Ssangyong Information vs. PJ Metal Co | Ssangyong Information vs. Formetal Co | Ssangyong Information vs. Eagon Industrial 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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