Correlation Between Nitro Games and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Nitro Games and Awardit AB 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 Nitro Games and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nitro Games Oyj and Awardit AB, you can compare the effects of market volatilities on Nitro Games and Awardit AB 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 Nitro Games with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitro Games and Awardit AB.
Diversification Opportunities for Nitro Games and Awardit AB
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nitro and Awardit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nitro Games Oyj and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and Nitro Games 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 Nitro Games Oyj are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Nitro Games i.e., Nitro Games and Awardit AB go up and down completely randomly.
Pair Corralation between Nitro Games and Awardit AB
Assuming the 90 days trading horizon Nitro Games Oyj is expected to under-perform the Awardit AB. In addition to that, Nitro Games is 1.72 times more volatile than Awardit AB. It trades about -0.04 of its total potential returns per unit of risk. Awardit AB is currently generating about 0.01 per unit of volatility. If you would invest 14,694 in Awardit AB on August 30, 2024 and sell it today you would lose (1,694) from holding Awardit AB or give up 11.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Nitro Games Oyj vs. Awardit AB
Performance |
| Timeline |
| Nitro Games Oyj |
| Awardit AB |
Nitro Games and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nitro Games and Awardit AB
The main advantage of trading using opposite Nitro Games and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nitro Games position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB's long position.| Nitro Games vs. Flexion Mobile PLC | Nitro Games vs. Stillfront Group AB | Nitro Games vs. iZafe Group AB | Nitro Games vs. KABE Group AB |
| Awardit AB vs. Soder Sportfiske AB | Awardit AB vs. Flexion Mobile PLC | Awardit AB vs. eEducation Albert AB | Awardit AB vs. JLT Mobile Computers |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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