Correlation Between NIP Group and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both NIP Group and Corsair 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 NIP Group and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIP Group American and Corsair Gaming, you can compare the effects of market volatilities on NIP Group and Corsair 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 NIP Group with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIP Group and Corsair Gaming.
Diversification Opportunities for NIP Group and Corsair Gaming
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NIP and Corsair is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NIP Group American and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and NIP Group 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 NIP Group American are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of NIP Group i.e., NIP Group and Corsair Gaming go up and down completely randomly.
Pair Corralation between NIP Group and Corsair Gaming
Given the investment horizon of 90 days NIP Group American is expected to generate 0.74 times more return on investment than Corsair Gaming. However, NIP Group American is 1.35 times less risky than Corsair Gaming. It trades about 0.49 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.16 per unit of risk. If you would invest 550.00 in NIP Group American on September 14, 2024 and sell it today you would earn a total of 168.00 from holding NIP Group American or generate 30.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIP Group American vs. Corsair Gaming
Performance |
| Timeline |
| NIP Group American |
| Corsair Gaming |
NIP Group and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIP Group and Corsair Gaming
The main advantage of trading using opposite NIP Group and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIP Group position performs unexpectedly, Corsair 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| NIP Group vs. Brenmiller Energy Ltd | NIP Group vs. IPG Photonics | NIP Group vs. Joint Stock | NIP Group vs. Cadence Design Systems |
| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Skillz Platform | Corsair Gaming vs. Fubotv 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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