Correlation Between Nexon Co and Tiidal Gaming
Can any of the company-specific risk be diversified away by investing in both Nexon Co and Tiidal Gaming 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 Tiidal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexon Co Ltd and Tiidal Gaming Group, you can compare the effects of market volatilities on Nexon Co and Tiidal Gaming 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 Tiidal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexon Co and Tiidal Gaming.
Diversification Opportunities for Nexon Co and Tiidal Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nexon and Tiidal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nexon Co Ltd and Tiidal Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiidal Gaming Group 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 Ltd are associated (or correlated) with Tiidal Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiidal Gaming Group has no effect on the direction of Nexon Co i.e., Nexon Co and Tiidal Gaming go up and down completely randomly.
Pair Corralation between Nexon Co and Tiidal Gaming
Assuming the 90 days horizon Nexon Co Ltd is expected to generate 0.87 times more return on investment than Tiidal Gaming. However, Nexon Co Ltd is 1.14 times less risky than Tiidal Gaming. It trades about -0.02 of its potential returns per unit of risk. Tiidal Gaming Group is currently generating about -0.04 per unit of risk. If you would invest 2,288 in Nexon Co Ltd on August 28, 2024 and sell it today you would lose (875.00) from holding Nexon Co Ltd or give up 38.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Nexon Co Ltd vs. Tiidal Gaming Group
Performance |
| Timeline |
| Nexon Co |
| Tiidal Gaming Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexon Co and Tiidal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexon Co and Tiidal Gaming
The main advantage of trading using opposite Nexon Co and Tiidal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexon Co position performs unexpectedly, Tiidal Gaming 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 Tiidal Gaming will offset losses from the drop in Tiidal Gaming's long position.| Nexon Co vs. GDEV Inc | Nexon Co vs. Doubledown Interactive Co | Nexon Co vs. Playstudios | Nexon Co vs. SohuCom |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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