Correlation Between NESTE OYJ and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both NESTE OYJ and Corsair Gaming 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 NESTE OYJ and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NESTE OYJ UNSPADR and Corsair Gaming, you can compare the effects of market volatilities on NESTE OYJ and Corsair Gaming 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 NESTE OYJ with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESTE OYJ and Corsair Gaming.
Diversification Opportunities for NESTE OYJ and Corsair Gaming
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NESTE and Corsair is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding NESTE OYJ UNSPADR and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and NESTE OYJ 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 NESTE OYJ UNSPADR are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of NESTE OYJ i.e., NESTE OYJ and Corsair Gaming go up and down completely randomly.
Pair Corralation between NESTE OYJ and Corsair Gaming
Assuming the 90 days trading horizon NESTE OYJ UNSPADR is expected to under-perform the Corsair Gaming. But the stock apears to be less risky and, when comparing its historical volatility, NESTE OYJ UNSPADR is 1.04 times less risky than Corsair Gaming. The stock trades about -0.37 of its potential returns per unit of risk. The Corsair Gaming is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 851.00 in Corsair Gaming on November 27, 2024 and sell it today you would earn a total of 350.00 from holding Corsair Gaming or generate 41.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NESTE OYJ UNSPADR vs. Corsair Gaming
Performance |
| Timeline |
| NESTE OYJ UNSPADR |
| Corsair Gaming |
NESTE OYJ and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NESTE OYJ and Corsair Gaming
The main advantage of trading using opposite NESTE OYJ and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NESTE OYJ position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| NESTE OYJ vs. Cleanaway Waste Management | NESTE OYJ vs. Siemens Healthineers AG | NESTE OYJ vs. WESANA HEALTH HOLD | NESTE OYJ vs. COMM HEALTH SYSTEMS |
| Corsair Gaming vs. PLAYTECH | Corsair Gaming vs. PLAYMATES HLDGS NEW | Corsair Gaming vs. ePlay Digital | Corsair Gaming vs. TRAVEL LEISURE DL 01 |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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