Correlation Between Netmarble Games and Krafton
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Krafton 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 Krafton 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 Krafton, you can compare the effects of market volatilities on Netmarble Games and Krafton 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 Krafton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Krafton.
Diversification Opportunities for Netmarble Games and Krafton
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Netmarble and Krafton is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Krafton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krafton 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 Krafton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krafton has no effect on the direction of Netmarble Games i.e., Netmarble Games and Krafton go up and down completely randomly.
Pair Corralation between Netmarble Games and Krafton
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Krafton. But the stock apears to be less risky and, when comparing its historical volatility, Netmarble Games Corp is 1.19 times less risky than Krafton. The stock trades about -0.33 of its potential returns per unit of risk. The Krafton is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 30,850,000 in Krafton on October 23, 2024 and sell it today you would earn a total of 3,650,000 from holding Krafton or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Netmarble Games Corp vs. Krafton
Performance |
| Timeline |
| Netmarble Games Corp |
| Krafton |
Netmarble Games and Krafton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Krafton
The main advantage of trading using opposite Netmarble Games and Krafton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Krafton 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 Krafton will offset losses from the drop in Krafton's long position.| Netmarble Games vs. Lotte Fine Chemical | Netmarble Games vs. Miwon Chemical | Netmarble Games vs. Han Kook Steel | Netmarble Games vs. Kg Chemical |
| Krafton vs. Korea Steel Co | Krafton vs. Bookook Steel | Krafton vs. Sempio Foods Co | Krafton vs. Hankuk Steel Wire |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |