Correlation Between Netmarble Games and Daechang Steel
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Daechang Steel 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 Daechang Steel 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 Daechang Steel Co, you can compare the effects of market volatilities on Netmarble Games and Daechang Steel 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 Daechang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Daechang Steel.
Diversification Opportunities for Netmarble Games and Daechang Steel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netmarble and Daechang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Daechang Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daechang Steel 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 Daechang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daechang Steel has no effect on the direction of Netmarble Games i.e., Netmarble Games and Daechang Steel go up and down completely randomly.
Pair Corralation between Netmarble Games and Daechang Steel
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Daechang Steel. In addition to that, Netmarble Games is 1.58 times more volatile than Daechang Steel Co. It trades about -0.41 of its total potential returns per unit of risk. Daechang Steel Co is currently generating about 0.03 per unit of volatility. If you would invest 206,000 in Daechang Steel Co on October 28, 2024 and sell it today you would earn a total of 1,500 from holding Daechang Steel Co or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Daechang Steel Co
Performance |
| Timeline |
| Netmarble Games Corp |
| Daechang Steel |
Netmarble Games and Daechang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Daechang Steel
The main advantage of trading using opposite Netmarble Games and Daechang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Daechang Steel 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 Daechang Steel will offset losses from the drop in Daechang Steel's long position.| Netmarble Games vs. Innowireless Co | Netmarble Games vs. Haitai Confectionery Foods | Netmarble Games vs. Sam Yang Foods | Netmarble Games vs. Hankukpackage Co |
| Daechang Steel vs. Kisan Telecom Co | Daechang Steel vs. Shinsegae Engineering Construction | Daechang Steel vs. Digital Power Communications | Daechang Steel vs. Kyeryong Construction 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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