Correlation Between NFT Gaming and NEXON Co
Can any of the company-specific risk be diversified away by investing in both NFT Gaming and NEXON Co 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 NFT Gaming and NEXON Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The NFT Gaming and NEXON Co, you can compare the effects of market volatilities on NFT Gaming and NEXON Co 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 NFT Gaming with a short position of NEXON Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of NFT Gaming and NEXON Co.
Diversification Opportunities for NFT Gaming and NEXON Co
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NFT and NEXON is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding The NFT Gaming and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON Co and NFT Gaming 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 The NFT Gaming are associated (or correlated) with NEXON Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON Co has no effect on the direction of NFT Gaming i.e., NFT Gaming and NEXON Co go up and down completely randomly.
Pair Corralation between NFT Gaming and NEXON Co
Given the investment horizon of 90 days The NFT Gaming is expected to generate 3.69 times more return on investment than NEXON Co. However, NFT Gaming is 3.69 times more volatile than NEXON Co. It trades about 0.0 of its potential returns per unit of risk. NEXON Co is currently generating about -0.03 per unit of risk. If you would invest 138.00 in The NFT Gaming on November 1, 2024 and sell it today you would lose (67.00) from holding The NFT Gaming or give up 48.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.9% |
| Values | Daily Returns |
The NFT Gaming vs. NEXON Co
Performance |
| Timeline |
| NFT Gaming |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NEXON Co |
NFT Gaming and NEXON Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NFT Gaming and NEXON Co
The main advantage of trading using opposite NFT Gaming and NEXON Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NFT Gaming position performs unexpectedly, NEXON Co 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 NEXON Co will offset losses from the drop in NEXON Co's long position.| NFT Gaming vs. Golden Matrix Group | NFT Gaming vs. Doubledown Interactive Co | NFT Gaming vs. Playstudios | NFT Gaming vs. Motorsport Gaming Us |
| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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