Correlation Between Netmarble Games and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on Netmarble Games and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Koryo Credit.
Diversification Opportunities for Netmarble Games and Koryo Credit
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Netmarble and Koryo is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Netmarble Games i.e., Netmarble Games and Koryo Credit go up and down completely randomly.
Pair Corralation between Netmarble Games and Koryo Credit
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Koryo Credit. In addition to that, Netmarble Games is 3.26 times more volatile than Koryo Credit Information. It trades about -0.4 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about -0.2 per unit of volatility. If you would invest 1,004,000 in Koryo Credit Information on November 1, 2024 and sell it today you would lose (23,000) from holding Koryo Credit Information or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Koryo Credit Information
Performance |
| Timeline |
| Netmarble Games Corp |
| Koryo Credit Information |
Netmarble Games and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Koryo Credit
The main advantage of trading using opposite Netmarble Games and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Netmarble Games vs. KG Eco Technology | Netmarble Games vs. HB Technology TD | Netmarble Games vs. Grand Korea Leisure | Netmarble Games vs. Woori Technology |
| Koryo Credit vs. ISU Chemical Co | Koryo Credit vs. PJ Metal Co | Koryo Credit vs. Kyung In Synthetic Corp | Koryo Credit vs. Netmarble Games Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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