Correlation Between NEXON and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both NEXON and GAMES OPERATORS 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 and GAMES OPERATORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and GAMES OPERATORS SA, you can compare the effects of market volatilities on NEXON and GAMES OPERATORS 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 with a short position of GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON and GAMES OPERATORS.
Diversification Opportunities for NEXON and GAMES OPERATORS
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NEXON and GAMES is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA and NEXON 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of NEXON i.e., NEXON and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between NEXON and GAMES OPERATORS
Assuming the 90 days horizon NEXON Co is expected to generate 1.06 times more return on investment than GAMES OPERATORS. However, NEXON is 1.06 times more volatile than GAMES OPERATORS SA. It trades about 0.05 of its potential returns per unit of risk. GAMES OPERATORS SA is currently generating about -0.14 per unit of risk. If you would invest 1,310 in NEXON Co on October 10, 2024 and sell it today you would earn a total of 20.00 from holding NEXON Co or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXON Co vs. GAMES OPERATORS SA
Performance |
| Timeline |
| NEXON |
| GAMES OPERATORS SA |
NEXON and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON and GAMES OPERATORS
The main advantage of trading using opposite NEXON and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS's long position.| NEXON vs. Universal Insurance Holdings | NEXON vs. QBE Insurance Group | NEXON vs. Genertec Universal Medical | NEXON vs. CompuGroup Medical SE |
| GAMES OPERATORS vs. Perseus Mining Limited | GAMES OPERATORS vs. MCEWEN MINING INC | GAMES OPERATORS vs. Comba Telecom Systems | GAMES OPERATORS vs. Jacquet Metal Service |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |