Correlation Between Maven Wireless and Nitro Games
Can any of the company-specific risk be diversified away by investing in both Maven Wireless 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 Maven Wireless and Nitro Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Nitro Games Oyj, you can compare the effects of market volatilities on Maven Wireless 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 Maven Wireless with a short position of Nitro Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Nitro Games.
Diversification Opportunities for Maven Wireless and Nitro Games
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maven and Nitro is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden 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 Maven Wireless 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 Maven Wireless Sweden 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 Maven Wireless i.e., Maven Wireless and Nitro Games go up and down completely randomly.
Pair Corralation between Maven Wireless and Nitro Games
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to under-perform the Nitro Games. But the stock apears to be less risky and, when comparing its historical volatility, Maven Wireless Sweden is 1.58 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 0.01 of returns per unit of risk over similar time horizon. If you would invest 282.00 in Nitro Games Oyj on September 3, 2024 and sell it today you would lose (16.00) from holding Nitro Games Oyj or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Nitro Games Oyj
Performance |
| Timeline |
| Maven Wireless Sweden |
| Nitro Games Oyj |
Maven Wireless and Nitro Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Nitro Games
The main advantage of trading using opposite Maven Wireless and Nitro Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless 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.| Maven Wireless vs. Embracer Group AB | Maven Wireless vs. Samhllsbyggnadsbolaget i Norden | Maven Wireless vs. Evolution AB | Maven Wireless vs. Stillfront Group AB |
| Nitro Games vs. Idogen AB | Nitro Games vs. Clean Motion AB | Nitro Games vs. Arion banki hf | Nitro Games vs. KABE Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |