Correlation Between Gaming Innovation and Nordic Mining
Can any of the company-specific risk be diversified away by investing in both Gaming Innovation and Nordic Mining 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 Gaming Innovation and Nordic Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming Innovation Group and Nordic Mining ASA, you can compare the effects of market volatilities on Gaming Innovation and Nordic Mining 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 Gaming Innovation with a short position of Nordic Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Innovation and Nordic Mining.
Diversification Opportunities for Gaming Innovation and Nordic Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaming and Nordic is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Innovation Group and Nordic Mining ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Mining ASA and Gaming Innovation 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 Gaming Innovation Group are associated (or correlated) with Nordic Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Mining ASA has no effect on the direction of Gaming Innovation i.e., Gaming Innovation and Nordic Mining go up and down completely randomly.
Pair Corralation between Gaming Innovation and Nordic Mining
Assuming the 90 days trading horizon Gaming Innovation Group is expected to generate 1.03 times more return on investment than Nordic Mining. However, Gaming Innovation is 1.03 times more volatile than Nordic Mining ASA. It trades about 0.0 of its potential returns per unit of risk. Nordic Mining ASA is currently generating about -0.03 per unit of risk. If you would invest 2,480 in Gaming Innovation Group on September 1, 2024 and sell it today you would lose (10.00) from holding Gaming Innovation Group or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Gaming Innovation Group vs. Nordic Mining ASA
Performance |
| Timeline |
| Gaming Innovation |
| Nordic Mining ASA |
Gaming Innovation and Nordic Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Innovation and Nordic Mining
The main advantage of trading using opposite Gaming Innovation and Nordic Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Innovation position performs unexpectedly, Nordic Mining 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 Nordic Mining will offset losses from the drop in Nordic Mining's long position.| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron ASA |
| Nordic Mining vs. SpareBank 1 stlandet | Nordic Mining vs. Odfjell Drilling | Nordic Mining vs. BW Offshore | Nordic Mining vs. Dolphin Drilling AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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