Correlation Between Blue Hat and NEXON
Can any of the company-specific risk be diversified away by investing in both Blue Hat 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 Blue Hat and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Hat Interactive and NEXON Co, you can compare the effects of market volatilities on Blue Hat 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 Blue Hat with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and NEXON.
Diversification Opportunities for Blue Hat and NEXON
Very weak diversification
The 3 months correlation between Blue and NEXON is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and Blue Hat 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 Blue Hat Interactive 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 Blue Hat i.e., Blue Hat and NEXON go up and down completely randomly.
Pair Corralation between Blue Hat and NEXON
Given the investment horizon of 90 days Blue Hat Interactive is expected to under-perform the NEXON. In addition to that, Blue Hat is 1.7 times more volatile than NEXON Co. It trades about -0.52 of its total potential returns per unit of risk. NEXON Co is currently generating about -0.21 per unit of volatility. If you would invest 1,880 in NEXON Co on August 31, 2024 and sell it today you would lose (282.00) from holding NEXON Co or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Hat Interactive vs. NEXON Co
Performance |
| Timeline |
| Blue Hat Interactive |
| NEXON |
Blue Hat and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Hat and NEXON
The main advantage of trading using opposite Blue Hat and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat 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.| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat vs. IGG Inc |
| NEXON vs. Capcom Co Ltd | NEXON vs. CD Projekt SA | NEXON vs. Sega Sammy Holdings | NEXON vs. Playtika Holding Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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