Correlation Between Comba Telecom and NEXON
Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and NEXON Co, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and NEXON.
Diversification Opportunities for Comba Telecom and NEXON
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Comba and NEXON is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and Comba Telecom 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and NEXON go up and down completely randomly.
Pair Corralation between Comba Telecom and NEXON
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the NEXON. In addition to that, Comba Telecom is 1.03 times more volatile than NEXON Co. It trades about -0.35 of its total potential returns per unit of risk. NEXON Co is currently generating about -0.19 per unit of volatility. If you would invest 1,380 in NEXON Co on October 25, 2024 and sell it today you would lose (110.00) from holding NEXON Co or give up 7.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. NEXON Co
Performance |
| Timeline |
| Comba Telecom Systems |
| NEXON |
Comba Telecom and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and NEXON
The main advantage of trading using opposite Comba Telecom and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.| Comba Telecom vs. alstria office REIT AG | Comba Telecom vs. CITY OFFICE REIT | Comba Telecom vs. ON SEMICONDUCTOR | Comba Telecom vs. Semiconductor Manufacturing International |
| NEXON vs. Citic Telecom International | NEXON vs. Comba Telecom Systems | NEXON vs. FIREWEED METALS P | NEXON vs. ADRIATIC METALS LS 013355 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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