Correlation Between WEBTOON Entertainment and NCino

Can any of the company-specific risk be diversified away by investing in both WEBTOON Entertainment and NCino 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 WEBTOON Entertainment and NCino into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WEBTOON Entertainment Common and nCino Inc, you can compare the effects of market volatilities on WEBTOON Entertainment and NCino 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 WEBTOON Entertainment with a short position of NCino. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBTOON Entertainment and NCino.

Diversification Opportunities for WEBTOON Entertainment and NCino

-0.6

Correlation Coefficient

WEBTOON Entertainment  NCino

Excellent diversification

The 3 months correlation between WEBTOON and NCino is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding WEBTOON Entertainment Common and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc and WEBTOON Entertainment 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 WEBTOON Entertainment Common are associated (or correlated) with NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of WEBTOON Entertainment i.e., WEBTOON Entertainment and NCino go up and down completely randomly.

Pair Corralation between WEBTOON Entertainment and NCino

Given the investment horizon of 90 days WEBTOON Entertainment Common is expected to generate 1.29 times more return on investment than NCino. However, WEBTOON Entertainment is 1.29 times more volatile than nCino Inc. It trades about -0.04 of its potential returns per unit of risk. nCino Inc is currently generating about -0.29 per unit of risk. If you would invest  1,342  in WEBTOON Entertainment Common on October 25, 2024 and sell it today you would lose (22.00) from holding WEBTOON Entertainment Common or give up 1.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

WEBTOON Entertainment Common  vs.  nCino Inc

WEBTOON Entertainment

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WEBTOON Entertainment Common are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, WEBTOON Entertainment displayed solid returns over the last few months and may actually be approaching a breakup point.

nCino Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days nCino Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with WEBTOON Entertainment and NCino

The main advantage of trading using opposite WEBTOON Entertainment and NCino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBTOON Entertainment position performs unexpectedly, NCino 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 NCino will offset losses from the drop in NCino's long position.

The idea behind WEBTOON Entertainment Common and nCino Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.