Correlation Between IClick Interactive and Nexxen International
Can any of the company-specific risk be diversified away by investing in both IClick Interactive and Nexxen International 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 IClick Interactive and Nexxen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iClick Interactive Asia and Nexxen International, you can compare the effects of market volatilities on IClick Interactive and Nexxen International 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 IClick Interactive with a short position of Nexxen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IClick Interactive and Nexxen International.
Diversification Opportunities for IClick Interactive and Nexxen International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IClick and Nexxen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding iClick Interactive Asia and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International and IClick Interactive 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 iClick Interactive Asia are associated (or correlated) with Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of IClick Interactive i.e., IClick Interactive and Nexxen International go up and down completely randomly.
Pair Corralation between IClick Interactive and Nexxen International
Given the investment horizon of 90 days IClick Interactive is expected to generate 1.22 times less return on investment than Nexxen International. In addition to that, IClick Interactive is 2.26 times more volatile than Nexxen International. It trades about 0.05 of its total potential returns per unit of risk. Nexxen International is currently generating about 0.13 per unit of volatility. If you would invest 514.00 in Nexxen International on August 27, 2024 and sell it today you would earn a total of 483.00 from holding Nexxen International or generate 93.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iClick Interactive Asia vs. Nexxen International
Performance |
| Timeline |
| iClick Interactive Asia |
| Nexxen International |
IClick Interactive and Nexxen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IClick Interactive and Nexxen International
The main advantage of trading using opposite IClick Interactive and Nexxen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IClick Interactive position performs unexpectedly, Nexxen International 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 Nexxen International will offset losses from the drop in Nexxen International's long position.| IClick Interactive vs. Mirriad Advertising plc | IClick Interactive vs. INEO Tech Corp | IClick Interactive vs. Kidoz Inc | IClick Interactive vs. Marchex |
| Nexxen International vs. Cardinal Health | Nexxen International vs. Genuine Parts Co | Nexxen International vs. Merit Medical Systems | Nexxen International vs. The Joint Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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