Correlation Between NEXON Co and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both NEXON Co and TEN SQUARE 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 NEXON Co and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and TEN SQUARE GAMES, you can compare the effects of market volatilities on NEXON Co and TEN SQUARE 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 NEXON Co with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON Co and TEN SQUARE.
Diversification Opportunities for NEXON Co and TEN SQUARE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NEXON and TEN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and NEXON Co 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 NEXON Co are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of NEXON Co i.e., NEXON Co and TEN SQUARE go up and down completely randomly.
Pair Corralation between NEXON Co and TEN SQUARE
Assuming the 90 days horizon NEXON Co is expected to under-perform the TEN SQUARE. In addition to that, NEXON Co is 1.28 times more volatile than TEN SQUARE GAMES. It trades about -0.11 of its total potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.09 per unit of volatility. If you would invest 1,746 in TEN SQUARE GAMES on November 8, 2024 and sell it today you would earn a total of 57.00 from holding TEN SQUARE GAMES or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NEXON Co vs. TEN SQUARE GAMES
Performance |
| Timeline |
| NEXON Co |
| TEN SQUARE GAMES |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NEXON Co and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON Co and TEN SQUARE
The main advantage of trading using opposite NEXON Co and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON Co position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| NEXON Co vs. Linedata Services SA | NEXON Co vs. East Africa Metals | NEXON Co vs. Alliance Data Systems | NEXON Co vs. GALENA MINING LTD |
| TEN SQUARE vs. UNIVERSAL MUSIC GROUP | TEN SQUARE vs. Columbia Sportswear | TEN SQUARE vs. Tencent Music Entertainment | TEN SQUARE vs. Warner Music Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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