Correlation Between Kakao Games and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Kakao Games and Myoung Shin 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 Kakao Games and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kakao Games Corp and Myoung Shin Industrial, you can compare the effects of market volatilities on Kakao Games and Myoung Shin 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 Kakao Games with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kakao Games and Myoung Shin.
Diversification Opportunities for Kakao Games and Myoung Shin
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kakao and Myoung is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kakao Games Corp and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Kakao 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 Kakao Games Corp are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Kakao Games i.e., Kakao Games and Myoung Shin go up and down completely randomly.
Pair Corralation between Kakao Games and Myoung Shin
Assuming the 90 days trading horizon Kakao Games Corp is expected to under-perform the Myoung Shin. But the stock apears to be less risky and, when comparing its historical volatility, Kakao Games Corp is 1.18 times less risky than Myoung Shin. The stock trades about -0.07 of its potential returns per unit of risk. The Myoung Shin Industrial is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,579,827 in Myoung Shin Industrial on September 12, 2024 and sell it today you would lose (467,827) from holding Myoung Shin Industrial or give up 29.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kakao Games Corp vs. Myoung Shin Industrial
Performance |
| Timeline |
| Kakao Games Corp |
| Myoung Shin Industrial |
Kakao Games and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kakao Games and Myoung Shin
The main advantage of trading using opposite Kakao Games and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kakao Games position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Kakao Games vs. Devsisters corporation | Kakao Games vs. Konan Technology | Kakao Games vs. Nice Information Telecommunication | Kakao Games vs. SKONEC Entertainment Co |
| Myoung Shin vs. LG Display Co | Myoung Shin vs. Phoenix Materials Co | Myoung Shin vs. Mgame Corp | Myoung Shin vs. Kakao Games 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |