Correlation Between NEXON Co and Take Two
Can any of the company-specific risk be diversified away by investing in both NEXON Co and Take Two 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 Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and Take Two Interactive Software, you can compare the effects of market volatilities on NEXON Co and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON Co and Take Two.
Diversification Opportunities for NEXON Co and Take Two
Pay attention - limited upside
The 3 months correlation between NEXON and Take is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of NEXON Co i.e., NEXON Co and Take Two go up and down completely randomly.
Pair Corralation between NEXON Co and Take Two
Assuming the 90 days horizon NEXON Co is expected to under-perform the Take Two. In addition to that, NEXON Co is 1.54 times more volatile than Take Two Interactive Software. It trades about -0.23 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about -0.05 per unit of volatility. If you would invest 18,898 in Take Two Interactive Software on November 5, 2024 and sell it today you would lose (347.00) from holding Take Two Interactive Software or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXON Co vs. Take Two Interactive Software
Performance |
| Timeline |
| NEXON Co |
| Take Two Interactive |
NEXON Co and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON Co and Take Two
The main advantage of trading using opposite NEXON Co and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON Co position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co vs. IGG Inc |
| Take Two vs. Nintendo Co ADR | Take Two vs. NetEase | Take Two vs. Playtika Holding Corp | Take Two vs. Electronic Arts |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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