Correlation Between NEXON Co and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both NEXON Co and GameOn Entertainment 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 GameOn Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and GameOn Entertainment Technologies, you can compare the effects of market volatilities on NEXON Co and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON Co and GameOn Entertainment.
Diversification Opportunities for NEXON Co and GameOn Entertainment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NEXON and GameOn is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of NEXON Co i.e., NEXON Co and GameOn Entertainment go up and down completely randomly.
Pair Corralation between NEXON Co and GameOn Entertainment
Assuming the 90 days horizon NEXON Co is expected to under-perform the GameOn Entertainment. But the pink sheet apears to be less risky and, when comparing its historical volatility, NEXON Co is 2.08 times less risky than GameOn Entertainment. The pink sheet trades about -0.06 of its potential returns per unit of risk. The GameOn Entertainment Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.39 in GameOn Entertainment Technologies on November 9, 2024 and sell it today you would lose (2.39) from holding GameOn Entertainment Technologies or give up 70.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.13% |
| Values | Daily Returns |
NEXON Co vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| NEXON Co |
| GameOn Entertainment |
NEXON Co and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON Co and GameOn Entertainment
The main advantage of trading using opposite NEXON Co and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON Co position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment's long position.| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co vs. IGG Inc |
| GameOn Entertainment vs. NEXON Co | GameOn Entertainment vs. i3 Interactive | GameOn Entertainment vs. Playstudios | GameOn Entertainment vs. Doubledown Interactive Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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