Correlation Between Netmarble Games and TOPMATERIAL
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and TOPMATERIAL 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 TOPMATERIAL 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 TOPMATERIAL LTD, you can compare the effects of market volatilities on Netmarble Games and TOPMATERIAL 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 TOPMATERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and TOPMATERIAL.
Diversification Opportunities for Netmarble Games and TOPMATERIAL
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Netmarble and TOPMATERIAL is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and TOPMATERIAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPMATERIAL LTD 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 TOPMATERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPMATERIAL LTD has no effect on the direction of Netmarble Games i.e., Netmarble Games and TOPMATERIAL go up and down completely randomly.
Pair Corralation between Netmarble Games and TOPMATERIAL
Assuming the 90 days trading horizon Netmarble Games Corp is expected to generate 1.14 times more return on investment than TOPMATERIAL. However, Netmarble Games is 1.14 times more volatile than TOPMATERIAL LTD. It trades about -0.08 of its potential returns per unit of risk. TOPMATERIAL LTD is currently generating about -0.48 per unit of risk. If you would invest 5,620,000 in Netmarble Games Corp on September 3, 2024 and sell it today you would lose (320,000) from holding Netmarble Games Corp or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. TOPMATERIAL LTD
Performance |
| Timeline |
| Netmarble Games Corp |
| TOPMATERIAL LTD |
Netmarble Games and TOPMATERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and TOPMATERIAL
The main advantage of trading using opposite Netmarble Games and TOPMATERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, TOPMATERIAL 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 TOPMATERIAL will offset losses from the drop in TOPMATERIAL's long position.| Netmarble Games vs. Seoul Food Industrial | Netmarble Games vs. Foodnamoo | Netmarble Games vs. KB Financial Group | Netmarble Games vs. FOODWELL Co |
| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 |