Correlation Between Netmarble Games and Cots Technology
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Cots Technology 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 Cots Technology 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 Cots Technology Co, you can compare the effects of market volatilities on Netmarble Games and Cots Technology 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 Cots Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Cots Technology.
Diversification Opportunities for Netmarble Games and Cots Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netmarble and Cots is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Cots Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cots Technology 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 Cots Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cots Technology has no effect on the direction of Netmarble Games i.e., Netmarble Games and Cots Technology go up and down completely randomly.
Pair Corralation between Netmarble Games and Cots Technology
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Cots Technology. But the stock apears to be less risky and, when comparing its historical volatility, Netmarble Games Corp is 1.65 times less risky than Cots Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Cots Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,040,000 in Cots Technology Co on November 9, 2024 and sell it today you would lose (427,000) from holding Cots Technology Co or give up 20.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.31% |
| Values | Daily Returns |
Netmarble Games Corp vs. Cots Technology Co
Performance |
| Timeline |
| Netmarble Games Corp |
| Cots Technology |
Netmarble Games and Cots Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Cots Technology
The main advantage of trading using opposite Netmarble Games and Cots Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Cots Technology 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 Cots Technology will offset losses from the drop in Cots Technology's long position.| Netmarble Games vs. Lotte Non Life Insurance | Netmarble Games vs. BooKook Steel Co | Netmarble Games vs. Husteel | Netmarble Games vs. Bookook Steel |
| Cots Technology vs. Namhae Chemical | Cots Technology vs. Daou Technology | Cots Technology vs. Puloon Technology | Cots Technology vs. Dong A Steel Technology |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |