Correlation Between DONGKUK TED and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Netmarble Games 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 DONGKUK TED and Netmarble Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Netmarble Games Corp, you can compare the effects of market volatilities on DONGKUK TED and Netmarble Games 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 DONGKUK TED with a short position of Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Netmarble Games.
Diversification Opportunities for DONGKUK TED and Netmarble Games
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between DONGKUK and Netmarble is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Netmarble Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netmarble Games Corp and DONGKUK TED 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 DONGKUK TED METAL are associated (or correlated) with Netmarble Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netmarble Games Corp has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Netmarble Games go up and down completely randomly.
Pair Corralation between DONGKUK TED and Netmarble Games
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.61 times more return on investment than Netmarble Games. However, DONGKUK TED METAL is 1.63 times less risky than Netmarble Games. It trades about 0.32 of its potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.32 per unit of risk. If you would invest 598,000 in DONGKUK TED METAL on October 21, 2024 and sell it today you would earn a total of 43,000 from holding DONGKUK TED METAL or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Netmarble Games Corp
Performance |
| Timeline |
| DONGKUK TED METAL |
| Netmarble Games Corp |
DONGKUK TED and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Netmarble Games
The main advantage of trading using opposite DONGKUK TED and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Netmarble Games 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 Netmarble Games will offset losses from the drop in Netmarble Games' long position.| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
| Netmarble Games vs. Ssangyong Information Communication | Netmarble Games vs. Lotte Data Communication | Netmarble Games vs. Atinum Investment Co | Netmarble Games vs. Korea Investment Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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