Correlation Between Nexxen International and IClick Interactive
Can any of the company-specific risk be diversified away by investing in both Nexxen International and IClick Interactive 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 Nexxen International and IClick Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexxen International and iClick Interactive Asia, you can compare the effects of market volatilities on Nexxen International and IClick Interactive 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 Nexxen International with a short position of IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexxen International and IClick Interactive.
Diversification Opportunities for Nexxen International and IClick Interactive
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nexxen and IClick is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nexxen International and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia and Nexxen International 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 Nexxen International are associated (or correlated) with IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of Nexxen International i.e., Nexxen International and IClick Interactive go up and down completely randomly.
Pair Corralation between Nexxen International and IClick Interactive
Given the investment horizon of 90 days Nexxen International is expected to generate 1.15 times less return on investment than IClick Interactive. In addition to that, Nexxen International is 1.11 times more volatile than iClick Interactive Asia. It trades about 0.22 of its total potential returns per unit of risk. iClick Interactive Asia is currently generating about 0.28 per unit of volatility. If you would invest 331.00 in iClick Interactive Asia on August 27, 2024 and sell it today you would earn a total of 99.00 from holding iClick Interactive Asia or generate 29.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexxen International vs. iClick Interactive Asia
Performance |
| Timeline |
| Nexxen International |
| iClick Interactive Asia |
Nexxen International and IClick Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexxen International and IClick Interactive
The main advantage of trading using opposite Nexxen International and IClick Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexxen International position performs unexpectedly, IClick Interactive 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 IClick Interactive will offset losses from the drop in IClick Interactive's long position.| Nexxen International vs. Cardinal Health | Nexxen International vs. Genuine Parts Co | Nexxen International vs. Merit Medical Systems | Nexxen International vs. The Joint Corp |
| IClick Interactive vs. Mirriad Advertising plc | IClick Interactive vs. INEO Tech Corp | IClick Interactive vs. Kidoz Inc | IClick Interactive vs. Marchex |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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