Correlation Between Virtu Financial and NEXON
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and NEXON 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 Virtu Financial and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and NEXON Co, you can compare the effects of market volatilities on Virtu Financial and NEXON 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 Virtu Financial with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and NEXON.
Diversification Opportunities for Virtu Financial and NEXON
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virtu and NEXON is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and Virtu Financial 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 Virtu Financial are associated (or correlated) with NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of Virtu Financial i.e., Virtu Financial and NEXON go up and down completely randomly.
Pair Corralation between Virtu Financial and NEXON
Assuming the 90 days horizon Virtu Financial is expected to under-perform the NEXON. But the stock apears to be less risky and, when comparing its historical volatility, Virtu Financial is 1.21 times less risky than NEXON. The stock trades about -0.06 of its potential returns per unit of risk. The NEXON Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,320 in NEXON Co on October 16, 2024 and sell it today you would earn a total of 10.00 from holding NEXON Co or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. NEXON Co
Performance |
| Timeline |
| Virtu Financial |
| NEXON |
Virtu Financial and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and NEXON
The main advantage of trading using opposite Virtu Financial and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| Virtu Financial vs. VARIOUS EATERIES LS | Virtu Financial vs. Lamar Advertising | Virtu Financial vs. BOS BETTER ONLINE | Virtu Financial vs. Coffee Holding Co |
| NEXON vs. Commonwealth Bank of | NEXON vs. The Hanover Insurance | NEXON vs. Virtu Financial | NEXON vs. ADRIATIC METALS LS 013355 |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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