Correlation Between Nitro Games and Corline Biomedical
Can any of the company-specific risk be diversified away by investing in both Nitro Games and Corline Biomedical 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 Corline Biomedical 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 Corline Biomedical AB, you can compare the effects of market volatilities on Nitro Games and Corline Biomedical 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 Corline Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitro Games and Corline Biomedical.
Diversification Opportunities for Nitro Games and Corline Biomedical
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nitro and Corline is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nitro Games Oyj and Corline Biomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corline Biomedical 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 Corline Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corline Biomedical has no effect on the direction of Nitro Games i.e., Nitro Games and Corline Biomedical go up and down completely randomly.
Pair Corralation between Nitro Games and Corline Biomedical
Assuming the 90 days trading horizon Nitro Games Oyj is expected to generate 0.77 times more return on investment than Corline Biomedical. However, Nitro Games Oyj is 1.29 times less risky than Corline Biomedical. It trades about 0.15 of its potential returns per unit of risk. Corline Biomedical AB is currently generating about -0.14 per unit of risk. If you would invest 238.00 in Nitro Games Oyj on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Nitro Games Oyj or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nitro Games Oyj vs. Corline Biomedical AB
Performance |
| Timeline |
| Nitro Games Oyj |
| Corline Biomedical |
Nitro Games and Corline Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nitro Games and Corline Biomedical
The main advantage of trading using opposite Nitro Games and Corline Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nitro Games position performs unexpectedly, Corline Biomedical 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 Corline Biomedical will offset losses from the drop in Corline Biomedical's long position.| Nitro Games vs. MilDef Group AB | Nitro Games vs. Fractal Gaming Group | Nitro Games vs. KABE Group AB | Nitro Games vs. IAR Systems Group |
| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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