Correlation Between Netmarble Games and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Netmarble Games and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and BIT Computer.
Diversification Opportunities for Netmarble Games and BIT Computer
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netmarble and BIT is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Netmarble Games i.e., Netmarble Games and BIT Computer go up and down completely randomly.
Pair Corralation between Netmarble Games and BIT Computer
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 1.02 times more return on investment than BIT Computer. However, Netmarble Games is 1.02 times more volatile than BIT Computer Co. It trades about 0.01 of its potential returns per unit of risk. BIT Computer Co is currently generating about 0.0 per unit of risk. If you would invest 5,720,000 in Netmarble Games Corp on September 3, 2024 and sell it today you would lose (420,000) from holding Netmarble Games Corp or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. BIT Computer Co
Performance |
| Timeline |
| Netmarble Games Corp |
| BIT Computer |
Netmarble Games and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and BIT Computer
The main advantage of trading using opposite Netmarble Games and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Netmarble Games vs. Seoul Food Industrial | Netmarble Games vs. Foodnamoo | Netmarble Games vs. KB Financial Group | Netmarble Games vs. FOODWELL Co |
| BIT Computer vs. CKH Food Health | BIT Computer vs. Polaris Office Corp | BIT Computer vs. Cuckoo Homesys Co | BIT Computer vs. Samlip General Foods |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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