Correlation Between Embracer Group and Nitro Games
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By analyzing existing cross correlation between Embracer Group AB and Nitro Games Oyj, you can compare the effects of market volatilities on Embracer Group 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 Embracer Group with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Nitro Games.
Diversification Opportunities for Embracer Group and Nitro Games
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embracer and Nitro is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group 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 Embracer Group 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 Embracer Group 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 Embracer Group i.e., Embracer Group and Nitro Games go up and down completely randomly.
Pair Corralation between Embracer Group and Nitro Games
Assuming the 90 days trading horizon Embracer Group AB is expected to generate 0.82 times more return on investment than Nitro Games. However, Embracer Group AB is 1.23 times less risky than Nitro Games. It trades about 0.0 of its potential returns per unit of risk. Nitro Games Oyj is currently generating about -0.03 per unit of risk. If you would invest 4,917 in Embracer Group AB on August 31, 2024 and sell it today you would lose (2,022) from holding Embracer Group AB or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Embracer Group AB vs. Nitro Games Oyj
Performance |
| Timeline |
| Embracer Group AB |
| Nitro Games Oyj |
Embracer Group and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embracer Group and Nitro Games
The main advantage of trading using opposite Embracer Group and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group 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.| Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group AB |
| Nitro Games vs. Stillfront Group AB | Nitro Games vs. G5 Entertainment publ | Nitro Games vs. Enad Global 7 | Nitro Games vs. Starbreeze AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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