Correlation Between Nexxen International and Thumzup Media
Can any of the company-specific risk be diversified away by investing in both Nexxen International and Thumzup Media 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 Thumzup Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexxen International and Thumzup Media, you can compare the effects of market volatilities on Nexxen International and Thumzup Media 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 Thumzup Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexxen International and Thumzup Media.
Diversification Opportunities for Nexxen International and Thumzup Media
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexxen and Thumzup is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nexxen International and Thumzup Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thumzup Media 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 Thumzup Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thumzup Media has no effect on the direction of Nexxen International i.e., Nexxen International and Thumzup Media go up and down completely randomly.
Pair Corralation between Nexxen International and Thumzup Media
Given the investment horizon of 90 days Nexxen International is expected to generate 0.61 times more return on investment than Thumzup Media. However, Nexxen International is 1.64 times less risky than Thumzup Media. It trades about 0.2 of its potential returns per unit of risk. Thumzup Media is currently generating about -0.18 per unit of risk. If you would invest 800.00 in Nexxen International on August 24, 2024 and sell it today you would earn a total of 191.00 from holding Nexxen International or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexxen International vs. Thumzup Media
Performance |
| Timeline |
| Nexxen International |
| Thumzup Media |
Nexxen International and Thumzup Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexxen International and Thumzup Media
The main advantage of trading using opposite Nexxen International and Thumzup Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexxen International position performs unexpectedly, Thumzup Media 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 Thumzup Media will offset losses from the drop in Thumzup Media's long position.| Nexxen International vs. National Vision Holdings | Nexxen International vs. SunOpta | Nexxen International vs. Coupang LLC | Nexxen International vs. Lululemon Athletica |
| Thumzup Media vs. WiMi Hologram Cloud | Thumzup Media vs. National CineMedia | Thumzup Media vs. Baosheng Media Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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