Correlation Between Flexion Mobile and Nitro Games
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile 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 Flexion Mobile and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexion Mobile PLC and Nitro Games Oyj, you can compare the effects of market volatilities on Flexion Mobile 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 Flexion Mobile with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Nitro Games.
Diversification Opportunities for Flexion Mobile and Nitro Games
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flexion and Nitro is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC 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 Flexion Mobile 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 Flexion Mobile PLC 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 Flexion Mobile i.e., Flexion Mobile and Nitro Games go up and down completely randomly.
Pair Corralation between Flexion Mobile and Nitro Games
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Nitro Games. But the stock apears to be less risky and, when comparing its historical volatility, Flexion Mobile PLC is 1.37 times less risky than Nitro Games. The stock trades about -0.09 of its potential returns per unit of risk. The Nitro Games Oyj is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Nitro Games Oyj on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Nitro Games Oyj or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Nitro Games Oyj
Performance |
| Timeline |
| Flexion Mobile PLC |
| Nitro Games Oyj |
Flexion Mobile and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Nitro Games
The main advantage of trading using opposite Flexion Mobile and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile 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.| Flexion Mobile vs. Train Alliance Sweden | Flexion Mobile vs. Arctic Blue Beverages | Flexion Mobile vs. Lundin Mining | Flexion Mobile vs. Filo Mining Corp |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |