Correlation Between IZafe Group and Nitro Games
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By analyzing existing cross correlation between iZafe Group AB and Nitro Games Oyj, you can compare the effects of market volatilities on IZafe Group 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 IZafe Group with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZafe Group and Nitro Games.
Diversification Opportunities for IZafe Group and Nitro Games
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IZafe and Nitro is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding iZafe Group 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 IZafe Group 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 iZafe Group 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 IZafe Group i.e., IZafe Group and Nitro Games go up and down completely randomly.
Pair Corralation between IZafe Group and Nitro Games
Assuming the 90 days trading horizon iZafe Group AB is expected to generate 1.35 times more return on investment than Nitro Games. However, IZafe Group is 1.35 times more volatile than Nitro Games Oyj. It trades about 0.01 of its potential returns per unit of risk. Nitro Games Oyj is currently generating about -0.03 per unit of risk. If you would invest 39.00 in iZafe Group AB on August 27, 2024 and sell it today you would lose (19.00) from holding iZafe Group AB or give up 48.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iZafe Group AB vs. Nitro Games Oyj
Performance |
| Timeline |
| iZafe Group AB |
| Nitro Games Oyj |
IZafe Group and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZafe Group and Nitro Games
The main advantage of trading using opposite IZafe Group and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZafe Group 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 iZafe Group AB 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. Flexion Mobile PLC | Nitro Games vs. iZafe Group AB | Nitro Games vs. KABE Group AB | Nitro Games vs. IAR Systems Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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