Correlation Between ADRIATIC METALS and NEXON
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS 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 ADRIATIC METALS and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and NEXON Co, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and NEXON.
Diversification Opportunities for ADRIATIC METALS and NEXON
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ADRIATIC and NEXON is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and NEXON go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and NEXON
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 1.55 times more return on investment than NEXON. However, ADRIATIC METALS is 1.55 times more volatile than NEXON Co. It trades about 0.03 of its potential returns per unit of risk. NEXON Co is currently generating about -0.24 per unit of risk. If you would invest 234.00 in ADRIATIC METALS LS 013355 on October 29, 2024 and sell it today you would earn a total of 2.00 from holding ADRIATIC METALS LS 013355 or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. NEXON Co
Performance |
| Timeline |
| ADRIATIC METALS LS |
| NEXON |
ADRIATIC METALS and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and NEXON
The main advantage of trading using opposite ADRIATIC METALS and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.| ADRIATIC METALS vs. Magnachip Semiconductor | ADRIATIC METALS vs. CAIRN HOMES EO | ADRIATIC METALS vs. The Home Depot | ADRIATIC METALS vs. MagnaChip Semiconductor Corp |
| NEXON vs. BURLINGTON STORES | NEXON vs. PATTIES FOODS | NEXON vs. GURU ORGANIC ENERGY | NEXON vs. GWILLI FOOD |
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 CEOs Directory module to screen CEOs from public companies around the world.
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