Correlation Between Corline Biomedical and Nitro Games
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Nitro Games 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 Corline Biomedical and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Nitro Games Oyj, you can compare the effects of market volatilities on Corline Biomedical and Nitro Games 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 Corline Biomedical with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Nitro Games.
Diversification Opportunities for Corline Biomedical and Nitro Games
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Corline and Nitro is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Nitro Games Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nitro Games Oyj and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Nitro Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nitro Games Oyj has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Nitro Games go up and down completely randomly.
Pair Corralation between Corline Biomedical and Nitro Games
Assuming the 90 days trading horizon Corline Biomedical AB is expected to under-perform the Nitro Games. In addition to that, Corline Biomedical is 1.29 times more volatile than Nitro Games Oyj. It trades about -0.14 of its total potential returns per unit of risk. Nitro Games Oyj is currently generating about 0.15 per unit of volatility. If you would invest 238.00 in Nitro Games Oyj on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Nitro Games Oyj or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corline Biomedical AB vs. Nitro Games Oyj
Performance |
| Timeline |
| Corline Biomedical |
| Nitro Games Oyj |
Corline Biomedical and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Nitro Games
The main advantage of trading using opposite Corline Biomedical and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, Nitro Games 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 Nitro Games will offset losses from the drop in Nitro Games' long position.| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
| Nitro Games vs. MilDef Group AB | Nitro Games vs. Fractal Gaming Group | Nitro Games vs. KABE Group AB | Nitro Games vs. IAR Systems 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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