Correlation Between NEXON and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both NEXON and Golden Matrix 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 and Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and Golden Matrix Group, you can compare the effects of market volatilities on NEXON and Golden Matrix 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 with a short position of Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON and Golden Matrix.
Diversification Opportunities for NEXON and Golden Matrix
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between NEXON and Golden is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group and NEXON 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of NEXON i.e., NEXON and Golden Matrix go up and down completely randomly.
Pair Corralation between NEXON and Golden Matrix
Assuming the 90 days horizon NEXON Co is expected to generate 0.6 times more return on investment than Golden Matrix. However, NEXON Co is 1.66 times less risky than Golden Matrix. It trades about -0.14 of its potential returns per unit of risk. Golden Matrix Group is currently generating about -0.2 per unit of risk. If you would invest 1,598 in NEXON Co on September 19, 2024 and sell it today you would lose (174.00) from holding NEXON Co or give up 10.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXON Co vs. Golden Matrix Group
Performance |
| Timeline |
| NEXON |
| Golden Matrix Group |
NEXON and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON and Golden Matrix
The main advantage of trading using opposite NEXON and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.| NEXON vs. Playstudios | NEXON vs. Doubledown Interactive Co | NEXON vs. Bragg Gaming Group | NEXON vs. Golden Matrix 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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