Correlation Between Gaming Innovation and Nordhealth
Can any of the company-specific risk be diversified away by investing in both Gaming Innovation and Nordhealth 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 Nordhealth 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 Nordhealth AS, you can compare the effects of market volatilities on Gaming Innovation and Nordhealth 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 Nordhealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming Innovation and Nordhealth.
Diversification Opportunities for Gaming Innovation and Nordhealth
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaming and Nordhealth is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gaming Innovation Group and Nordhealth AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordhealth AS 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 Nordhealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordhealth AS has no effect on the direction of Gaming Innovation i.e., Gaming Innovation and Nordhealth go up and down completely randomly.
Pair Corralation between Gaming Innovation and Nordhealth
Assuming the 90 days trading horizon Gaming Innovation Group is expected to under-perform the Nordhealth. But the stock apears to be less risky and, when comparing its historical volatility, Gaming Innovation Group is 2.74 times less risky than Nordhealth. The stock trades about 0.0 of its potential returns per unit of risk. The Nordhealth AS is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Nordhealth AS on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Nordhealth AS or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Gaming Innovation Group vs. Nordhealth AS
Performance |
| Timeline |
| Gaming Innovation |
| Nordhealth AS |
Gaming Innovation and Nordhealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming Innovation and Nordhealth
The main advantage of trading using opposite Gaming Innovation and Nordhealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming Innovation position performs unexpectedly, Nordhealth 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 Nordhealth will offset losses from the drop in Nordhealth's long position.| Gaming Innovation vs. Catena Media plc | Gaming Innovation vs. Idex ASA | Gaming Innovation vs. XXL ASA | Gaming Innovation vs. Kitron ASA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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