Correlation Between Doubledown Interactive and Nexon Co
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and Nexon Co 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 Doubledown Interactive and Nexon Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Nexon Co Ltd, you can compare the effects of market volatilities on Doubledown Interactive and Nexon Co 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 Doubledown Interactive with a short position of Nexon Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Nexon Co.
Diversification Opportunities for Doubledown Interactive and Nexon Co
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Doubledown and Nexon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Nexon Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexon Co and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Nexon Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexon Co has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Nexon Co go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Nexon Co
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 1.73 times more return on investment than Nexon Co. However, Doubledown Interactive is 1.73 times more volatile than Nexon Co Ltd. It trades about 0.01 of its potential returns per unit of risk. Nexon Co Ltd is currently generating about -0.2 per unit of risk. If you would invest 1,050 in Doubledown Interactive Co on October 22, 2024 and sell it today you would lose (2.00) from holding Doubledown Interactive Co or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Nexon Co Ltd
Performance |
| Timeline |
| Doubledown Interactive |
| Nexon Co |
Doubledown Interactive and Nexon Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Nexon Co
The main advantage of trading using opposite Doubledown Interactive and Nexon Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, Nexon Co 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 Co will offset losses from the drop in Nexon Co's long position.| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV Inc |
| Nexon Co vs. i3 Interactive | Nexon Co vs. Sega Sammy Holdings | Nexon Co vs. Square Enix Holdings | Nexon Co vs. Nintendo 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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