Correlation Between Mobile Global and NEXON Co
Can any of the company-specific risk be diversified away by investing in both Mobile Global and NEXON Co 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 Mobile Global and NEXON Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Global Esports and NEXON Co, you can compare the effects of market volatilities on Mobile Global and NEXON Co 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 Mobile Global with a short position of NEXON Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Global and NEXON Co.
Diversification Opportunities for Mobile Global and NEXON Co
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobile and NEXON is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Global Esports and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON Co and Mobile Global 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 Mobile Global Esports are associated (or correlated) with NEXON Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON Co has no effect on the direction of Mobile Global i.e., Mobile Global and NEXON Co go up and down completely randomly.
Pair Corralation between Mobile Global and NEXON Co
Given the investment horizon of 90 days Mobile Global Esports is expected to under-perform the NEXON Co. In addition to that, Mobile Global is 1.64 times more volatile than NEXON Co. It trades about -0.03 of its total potential returns per unit of risk. NEXON Co is currently generating about -0.03 per unit of volatility. If you would invest 2,328 in NEXON Co on November 1, 2024 and sell it today you would lose (986.00) from holding NEXON Co or give up 42.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.9% |
| Values | Daily Returns |
Mobile Global Esports vs. NEXON Co
Performance |
| Timeline |
| Mobile Global Esports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NEXON Co |
Mobile Global and NEXON Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Global and NEXON Co
The main advantage of trading using opposite Mobile Global and NEXON Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Global position performs unexpectedly, NEXON Co 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 NEXON Co will offset losses from the drop in NEXON Co's long position.| Mobile Global vs. Magic Empire Global | Mobile Global vs. Motorsport Gaming Us | Mobile Global vs. Virax Biolabs Group | Mobile Global vs. Intelligent Living Application |
| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co vs. IGG Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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