Correlation Between EAST SIDE and NEXON
Can any of the company-specific risk be diversified away by investing in both EAST SIDE 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 EAST SIDE and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and NEXON Co, you can compare the effects of market volatilities on EAST SIDE 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 EAST SIDE with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and NEXON.
Diversification Opportunities for EAST SIDE and NEXON
Poor diversification
The 3 months correlation between EAST and NEXON is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and EAST SIDE 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 EAST SIDE GAMES 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 EAST SIDE i.e., EAST SIDE and NEXON go up and down completely randomly.
Pair Corralation between EAST SIDE and NEXON
Assuming the 90 days horizon EAST SIDE is expected to generate 1.11 times less return on investment than NEXON. In addition to that, EAST SIDE is 1.19 times more volatile than NEXON Co. It trades about 0.04 of its total potential returns per unit of risk. NEXON Co is currently generating about 0.06 per unit of volatility. If you would invest 701.00 in NEXON Co on September 12, 2024 and sell it today you would earn a total of 659.00 from holding NEXON Co or generate 94.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAST SIDE GAMES vs. NEXON Co
Performance |
| Timeline |
| EAST SIDE GAMES |
| NEXON |
EAST SIDE and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST SIDE and NEXON
The main advantage of trading using opposite EAST SIDE and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE 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.| EAST SIDE vs. NEXON Co | EAST SIDE vs. Take Two Interactive Software | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. SIVERS SEMICONDUCTORS AB |
| NEXON vs. Harmony Gold Mining | NEXON vs. GRIFFIN MINING LTD | NEXON vs. Federal Agricultural Mortgage | NEXON vs. Penta Ocean Construction Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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