Correlation Between Dolphin Entertainment and Nexxen International
Can any of the company-specific risk be diversified away by investing in both Dolphin Entertainment and Nexxen International 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 Dolphin Entertainment and Nexxen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolphin Entertainment and Nexxen International, you can compare the effects of market volatilities on Dolphin Entertainment and Nexxen International 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 Dolphin Entertainment with a short position of Nexxen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Entertainment and Nexxen International.
Diversification Opportunities for Dolphin Entertainment and Nexxen International
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dolphin and Nexxen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International and Dolphin Entertainment 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 Dolphin Entertainment are associated (or correlated) with Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of Dolphin Entertainment i.e., Dolphin Entertainment and Nexxen International go up and down completely randomly.
Pair Corralation between Dolphin Entertainment and Nexxen International
Given the investment horizon of 90 days Dolphin Entertainment is expected to under-perform the Nexxen International. But the stock apears to be less risky and, when comparing its historical volatility, Dolphin Entertainment is 1.73 times less risky than Nexxen International. The stock trades about -0.07 of its potential returns per unit of risk. The Nexxen International is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Nexxen International on August 31, 2024 and sell it today you would earn a total of 151.00 from holding Nexxen International or generate 18.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolphin Entertainment vs. Nexxen International
Performance |
| Timeline |
| Dolphin Entertainment |
| Nexxen International |
Dolphin Entertainment and Nexxen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Entertainment and Nexxen International
The main advantage of trading using opposite Dolphin Entertainment and Nexxen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment position performs unexpectedly, Nexxen International 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 Nexxen International will offset losses from the drop in Nexxen International's long position.| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
| Nexxen International vs. Mirriad Advertising plc | Nexxen International vs. INEO Tech Corp | Nexxen International vs. Marchex | Nexxen International vs. Entravision Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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