Correlation Between JLT Mobile and Nitro Games
Can any of the company-specific risk be diversified away by investing in both JLT Mobile 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 JLT Mobile and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLT Mobile Computers and Nitro Games Oyj, you can compare the effects of market volatilities on JLT Mobile 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 JLT Mobile with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLT Mobile and Nitro Games.
Diversification Opportunities for JLT Mobile and Nitro Games
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JLT and Nitro is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding JLT Mobile Computers 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 JLT Mobile 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 JLT Mobile Computers 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 JLT Mobile i.e., JLT Mobile and Nitro Games go up and down completely randomly.
Pair Corralation between JLT Mobile and Nitro Games
Assuming the 90 days trading horizon JLT Mobile Computers is expected to under-perform the Nitro Games. But the stock apears to be less risky and, when comparing its historical volatility, JLT Mobile Computers is 2.24 times less risky than Nitro Games. The stock trades about -0.07 of its potential returns per unit of risk. The Nitro Games Oyj is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Nitro Games Oyj on September 12, 2024 and sell it today you would lose (130.00) from holding Nitro Games Oyj or give up 36.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLT Mobile Computers vs. Nitro Games Oyj
Performance |
| Timeline |
| JLT Mobile Computers |
| Nitro Games Oyj |
JLT Mobile and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLT Mobile and Nitro Games
The main advantage of trading using opposite JLT Mobile and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLT Mobile 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.| JLT Mobile vs. Anoto Group AB | JLT Mobile vs. Avensia publ AB | JLT Mobile vs. Diadrom Holding AB | JLT Mobile vs. Nepa AB |
| Nitro Games vs. Embracer Group AB | Nitro Games vs. Sinch AB | Nitro Games vs. Paradox Interactive AB | Nitro Games vs. Evolution 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |