Correlation Between NGG and Ice Code
Can any of the company-specific risk be diversified away by investing in both NGG and Ice Code 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 NGG and Ice Code into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGG and Ice Code Games, you can compare the effects of market volatilities on NGG and Ice Code 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 NGG with a short position of Ice Code. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGG and Ice Code.
Diversification Opportunities for NGG and Ice Code
Very weak diversification
The 3 months correlation between NGG and Ice is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding NGG and Ice Code Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Code Games and NGG 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 NGG are associated (or correlated) with Ice Code. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Code Games has no effect on the direction of NGG i.e., NGG and Ice Code go up and down completely randomly.
Pair Corralation between NGG and Ice Code
Assuming the 90 days trading horizon NGG is expected to generate 0.59 times more return on investment than Ice Code. However, NGG is 1.7 times less risky than Ice Code. It trades about -0.02 of its potential returns per unit of risk. Ice Code Games is currently generating about -0.36 per unit of risk. If you would invest 3.42 in NGG on August 30, 2024 and sell it today you would lose (0.14) from holding NGG or give up 4.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
NGG vs. Ice Code Games
Performance |
| Timeline |
| NGG |
| Ice Code Games |
NGG and Ice Code Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGG and Ice Code
The main advantage of trading using opposite NGG and Ice Code positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGG position performs unexpectedly, Ice Code 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 Ice Code will offset losses from the drop in Ice Code's long position.| NGG vs. Asseco Business Solutions | NGG vs. Detalion Games SA | NGG vs. CFI Holding SA | NGG vs. HM Inwest SA |
| Ice Code vs. Echo Investment SA | Ice Code vs. Mlk Foods Public | Ice Code vs. Marie Brizard Wine | Ice Code vs. Immobile |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |