Correlation Between Ice Code and NGG
Can any of the company-specific risk be diversified away by investing in both Ice Code and NGG 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 Ice Code and NGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ice Code Games and NGG, you can compare the effects of market volatilities on Ice Code and NGG 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 Ice Code with a short position of NGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ice Code and NGG.
Diversification Opportunities for Ice Code and NGG
Modest diversification
The 3 months correlation between Ice and NGG is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ice Code Games and NGG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGG and Ice Code 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 Ice Code Games are associated (or correlated) with NGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGG has no effect on the direction of Ice Code i.e., Ice Code and NGG go up and down completely randomly.
Pair Corralation between Ice Code and NGG
Assuming the 90 days trading horizon Ice Code Games is expected to generate 1.0 times more return on investment than NGG. However, Ice Code is 1.0 times more volatile than NGG. It trades about -0.01 of its potential returns per unit of risk. NGG is currently generating about -0.01 per unit of risk. If you would invest 39.00 in Ice Code Games on August 26, 2024 and sell it today you would lose (19.00) from holding Ice Code Games or give up 48.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.51% |
| Values | Daily Returns |
Ice Code Games vs. NGG
Performance |
| Timeline |
| Ice Code Games |
| NGG |
Ice Code and NGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ice Code and NGG
The main advantage of trading using opposite Ice Code and NGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ice Code position performs unexpectedly, NGG 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 NGG will offset losses from the drop in NGG's long position.| Ice Code vs. Asseco Business Solutions | Ice Code vs. Detalion Games SA | Ice Code vs. Asseco South Eastern | Ice Code vs. Movie Games SA |
| NGG vs. Asseco Business Solutions | NGG vs. Detalion Games SA | NGG vs. Asseco South Eastern | NGG vs. Movie Games SA |
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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