Correlation Between Live Motion and Novina SA
Can any of the company-specific risk be diversified away by investing in both Live Motion and Novina SA 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 Live Motion and Novina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and Novina SA, you can compare the effects of market volatilities on Live Motion and Novina SA 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 Live Motion with a short position of Novina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and Novina SA.
Diversification Opportunities for Live Motion and Novina SA
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Novina is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games and Novina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novina SA and Live Motion 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 Live Motion Games are associated (or correlated) with Novina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novina SA has no effect on the direction of Live Motion i.e., Live Motion and Novina SA go up and down completely randomly.
Pair Corralation between Live Motion and Novina SA
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the Novina SA. But the stock apears to be less risky and, when comparing its historical volatility, Live Motion Games is 1.37 times less risky than Novina SA. The stock trades about -0.04 of its potential returns per unit of risk. The Novina SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Novina SA on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Novina SA or generate 61.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Live Motion Games vs. Novina SA
Performance |
| Timeline |
| Live Motion Games |
| Novina SA |
Live Motion and Novina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and Novina SA
The main advantage of trading using opposite Live Motion and Novina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion position performs unexpectedly, Novina SA 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 Novina SA will offset losses from the drop in Novina SA's long position.| Live Motion vs. Creativeforge Games SA | Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA |
| Novina SA vs. mBank SA | Novina SA vs. Noble Financials SA | Novina SA vs. Live Motion Games | Novina SA vs. ING Bank lski |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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