Correlation Between Netmarble Games and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Netmarble Games and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Inzi Display.
Diversification Opportunities for Netmarble Games and Inzi Display
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Netmarble and Inzi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Netmarble Games i.e., Netmarble Games and Inzi Display go up and down completely randomly.
Pair Corralation between Netmarble Games and Inzi Display
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 2.51 times more return on investment than Inzi Display. However, Netmarble Games is 2.51 times more volatile than Inzi Display CoLtd. It trades about -0.09 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.31 per unit of risk. If you would invest 5,950,000 in Netmarble Games Corp on September 3, 2024 and sell it today you would lose (650,000) from holding Netmarble Games Corp or give up 10.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Inzi Display CoLtd
Performance |
| Timeline |
| Netmarble Games Corp |
| Inzi Display CoLtd |
Netmarble Games and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Inzi Display
The main advantage of trading using opposite Netmarble Games and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Netmarble Games vs. Seoul Food Industrial | Netmarble Games vs. Foodnamoo | Netmarble Games vs. KB Financial Group | Netmarble Games vs. FOODWELL Co |
| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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