Correlation Between KABE Group and Nitro Games
Can any of the company-specific risk be diversified away by investing in both KABE Group 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 KABE Group and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Nitro Games Oyj, you can compare the effects of market volatilities on KABE 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 KABE Group with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Nitro Games.
Diversification Opportunities for KABE Group and Nitro Games
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between KABE and Nitro is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding KABE 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 KABE 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 KABE 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 KABE Group i.e., KABE Group and Nitro Games go up and down completely randomly.
Pair Corralation between KABE Group and Nitro Games
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Nitro Games. But the stock apears to be less risky and, when comparing its historical volatility, KABE Group AB is 2.16 times less risky than Nitro Games. The stock trades about -0.02 of its potential returns per unit of risk. The Nitro Games Oyj is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Nitro Games Oyj on November 7, 2024 and sell it today you would earn a total of 30.00 from holding Nitro Games Oyj or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
KABE Group AB vs. Nitro Games Oyj
Performance |
| Timeline |
| KABE Group AB |
| Nitro Games Oyj |
KABE Group and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KABE Group and Nitro Games
The main advantage of trading using opposite KABE Group and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE 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.| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |