Correlation Between Havsfrun Investment and Nitro Games
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment 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 Havsfrun Investment and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and Nitro Games Oyj, you can compare the effects of market volatilities on Havsfrun Investment 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 Havsfrun Investment with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and Nitro Games.
Diversification Opportunities for Havsfrun Investment and Nitro Games
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Havsfrun and Nitro is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment 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 Havsfrun Investment 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 Havsfrun Investment 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 Havsfrun Investment i.e., Havsfrun Investment and Nitro Games go up and down completely randomly.
Pair Corralation between Havsfrun Investment and Nitro Games
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 0.46 times more return on investment than Nitro Games. However, Havsfrun Investment AB is 2.19 times less risky than Nitro Games. It trades about 0.02 of its potential returns per unit of risk. Nitro Games Oyj is currently generating about -0.04 per unit of risk. If you would invest 1,220 in Havsfrun Investment AB on August 31, 2024 and sell it today you would earn a total of 40.00 from holding Havsfrun Investment AB or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Havsfrun Investment AB vs. Nitro Games Oyj
Performance |
| Timeline |
| Havsfrun Investment |
| Nitro Games Oyj |
Havsfrun Investment and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and Nitro Games
The main advantage of trading using opposite Havsfrun Investment and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment 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.| Havsfrun Investment vs. Media and Games | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group | Havsfrun Investment vs. Norva24 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |