Correlation Between Netmarble Games and Coloray International
Can any of the company-specific risk be diversified away by investing in both Netmarble Games and Coloray International 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 Coloray International 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 Coloray International Investment, you can compare the effects of market volatilities on Netmarble Games and Coloray International 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 Coloray International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netmarble Games and Coloray International.
Diversification Opportunities for Netmarble Games and Coloray International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netmarble and Coloray is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Netmarble Games Corp and Coloray International Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloray International 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 Coloray International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloray International has no effect on the direction of Netmarble Games i.e., Netmarble Games and Coloray International go up and down completely randomly.
Pair Corralation between Netmarble Games and Coloray International
Assuming the 90 days trading horizon Netmarble Games Corp is expected to under-perform the Coloray International. In addition to that, Netmarble Games is 1.1 times more volatile than Coloray International Investment. It trades about -0.04 of its total potential returns per unit of risk. Coloray International Investment is currently generating about 0.0 per unit of volatility. If you would invest 81,300 in Coloray International Investment on November 3, 2024 and sell it today you would lose (4,600) from holding Coloray International Investment or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netmarble Games Corp vs. Coloray International Investme
Performance |
| Timeline |
| Netmarble Games Corp |
| Coloray International |
Netmarble Games and Coloray International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netmarble Games and Coloray International
The main advantage of trading using opposite Netmarble Games and Coloray International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netmarble Games position performs unexpectedly, Coloray International 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 Coloray International will offset losses from the drop in Coloray International's long position.| Netmarble Games vs. Pureun Mutual Savings | Netmarble Games vs. Daiyang Metal Co | Netmarble Games vs. Hana Financial | Netmarble Games vs. Dongil Metal Co |
| Coloray International vs. Lotte Data Communication | Coloray International vs. Korea Computer | Coloray International vs. CG Hi Tech | Coloray International vs. Sangsin Energy Display |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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