Correlation Between Netmarble Games and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Cube Entertainment 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 Cube Entertainment 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 Cube Entertainment, you can compare the effects of market volatilities on Netmarble Games and Cube Entertainment 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 Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Cube Entertainment.
Diversification Opportunities for Netmarble Games and Cube Entertainment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netmarble and Cube is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment 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 Cube Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cube Entertainment has no effect on the direction of Netmarble Games i.e., Netmarble Games and Cube Entertainment go up and down completely randomly.
Pair Corralation between Netmarble Games and Cube Entertainment
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 0.92 times more return on investment than Cube Entertainment. However, Netmarble Games Corp is 1.09 times less risky than Cube Entertainment. It trades about 0.01 of its potential returns per unit of risk. Cube Entertainment is currently generating about 0.0 per unit of risk. If you would invest 5,107,606 in Netmarble Games Corp on August 25, 2024 and sell it today you would lose (132,606) from holding Netmarble Games Corp or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Cube Entertainment
Performance |
| Timeline |
| Netmarble Games Corp |
| Cube Entertainment |
Netmarble Games and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Cube Entertainment
The main advantage of trading using opposite Netmarble Games and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Cube Entertainment 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 Cube Entertainment will offset losses from the drop in Cube Entertainment's long position.| Netmarble Games vs. Kisan Telecom Co | Netmarble Games vs. SK Chemicals Co | Netmarble Games vs. SK Telecom Co | Netmarble Games vs. Korea Information Communications |
| Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. LG Energy Solution | Cube Entertainment vs. SK Hynix |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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