Correlation Between IAR Systems and Nitro Games
Can any of the company-specific risk be diversified away by investing in both IAR Systems 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 IAR Systems and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAR Systems Group and Nitro Games Oyj, you can compare the effects of market volatilities on IAR Systems 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 IAR Systems with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAR Systems and Nitro Games.
Diversification Opportunities for IAR Systems and Nitro Games
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IAR and Nitro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IAR Systems Group 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 IAR Systems 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 IAR Systems Group 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 IAR Systems i.e., IAR Systems and Nitro Games go up and down completely randomly.
Pair Corralation between IAR Systems and Nitro Games
If you would invest (100.00) in IAR Systems Group on August 30, 2024 and sell it today you would earn a total of 100.00 from holding IAR Systems Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IAR Systems Group vs. Nitro Games Oyj
Performance |
| Timeline |
| IAR Systems Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nitro Games Oyj |
IAR Systems and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAR Systems and Nitro Games
The main advantage of trading using opposite IAR Systems and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAR Systems 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.The idea behind IAR Systems Group and Nitro Games Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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