Correlation Between Netmarble Games and GenoFocus
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and GenoFocus 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 GenoFocus 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 GenoFocus, you can compare the effects of market volatilities on Netmarble Games and GenoFocus 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 GenoFocus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and GenoFocus.
Diversification Opportunities for Netmarble Games and GenoFocus
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netmarble and GenoFocus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and GenoFocus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GenoFocus 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 GenoFocus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GenoFocus has no effect on the direction of Netmarble Games i.e., Netmarble Games and GenoFocus go up and down completely randomly.
Pair Corralation between Netmarble Games and GenoFocus
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 0.71 times more return on investment than GenoFocus. However, Netmarble Games Corp is 1.41 times less risky than GenoFocus. It trades about 0.14 of its potential returns per unit of risk. GenoFocus is currently generating about 0.03 per unit of risk. If you would invest 5,040,000 in Netmarble Games Corp on September 13, 2024 and sell it today you would earn a total of 470,000 from holding Netmarble Games Corp or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Netmarble Games Corp vs. GenoFocus
Performance |
| Timeline |
| Netmarble Games Corp |
| GenoFocus |
Netmarble Games and GenoFocus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and GenoFocus
The main advantage of trading using opposite Netmarble Games and GenoFocus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, GenoFocus 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 GenoFocus will offset losses from the drop in GenoFocus' long position.| Netmarble Games vs. Seoul Semiconductor Co | Netmarble Games vs. LAKE MATERIALS LTD | Netmarble Games vs. ABOV Semiconductor Co | Netmarble Games vs. INNOX Advanced Materials |
| GenoFocus vs. LG Chemicals | GenoFocus vs. POSCO Holdings | GenoFocus vs. Hanwha Solutions | GenoFocus vs. Lotte Chemical 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |