Correlation Between NEXON Co and Blue Hat
Can any of the company-specific risk be diversified away by investing in both NEXON Co and Blue Hat 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 NEXON Co and Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and Blue Hat Interactive, you can compare the effects of market volatilities on NEXON Co and Blue Hat 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 NEXON Co with a short position of Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON Co and Blue Hat.
Diversification Opportunities for NEXON Co and Blue Hat
Very poor diversification
The 3 months correlation between NEXON and Blue is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive and NEXON Co 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 NEXON Co are associated (or correlated) with Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of NEXON Co i.e., NEXON Co and Blue Hat go up and down completely randomly.
Pair Corralation between NEXON Co and Blue Hat
Assuming the 90 days horizon NEXON Co is expected to generate 0.44 times more return on investment than Blue Hat. However, NEXON Co is 2.26 times less risky than Blue Hat. It trades about -0.03 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about -0.03 per unit of risk. 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 | Strong |
| Accuracy | 63.5% |
| Values | Daily Returns |
NEXON Co vs. Blue Hat Interactive
Performance |
| Timeline |
| NEXON Co |
| Blue Hat Interactive |
NEXON Co and Blue Hat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON Co and Blue Hat
The main advantage of trading using opposite NEXON Co and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON Co position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co vs. IGG Inc |
| Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. i3 Interactive | Blue Hat 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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