Correlation Between Netmarble Games and IC Technology
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and IC Technology 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 IC Technology 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 IC Technology Co, you can compare the effects of market volatilities on Netmarble Games and IC Technology 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 IC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and IC Technology.
Diversification Opportunities for Netmarble Games and IC Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Netmarble and 052860 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and IC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IC Technology 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 IC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IC Technology has no effect on the direction of Netmarble Games i.e., Netmarble Games and IC Technology go up and down completely randomly.
Pair Corralation between Netmarble Games and IC Technology
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 0.86 times more return on investment than IC Technology. However, Netmarble Games Corp is 1.16 times less risky than IC Technology. It trades about 0.04 of its potential returns per unit of risk. IC Technology Co is currently generating about 0.02 per unit of risk. If you would invest 4,315,000 in Netmarble Games Corp on September 12, 2024 and sell it today you would earn a total of 1,135,000 from holding Netmarble Games Corp or generate 26.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. IC Technology Co
Performance |
| Timeline |
| Netmarble Games Corp |
| IC Technology |
Netmarble Games and IC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and IC Technology
The main advantage of trading using opposite Netmarble Games and IC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, IC Technology 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 IC Technology will offset losses from the drop in IC Technology's long position.| Netmarble Games vs. YG Entertainment | Netmarble Games vs. JYP Entertainment | Netmarble Games vs. Cube Entertainment | Netmarble Games vs. FNC Entertainment Co |
| IC Technology vs. Netmarble Games Corp | IC Technology vs. Pungguk Ethanol Industrial | IC Technology vs. Myoung Shin Industrial | IC Technology vs. Samhwa Paint Industrial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |