Correlation Between Nitro Games and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both Nitro Games and Episurf Medical 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 Episurf Medical 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 Episurf Medical AB, you can compare the effects of market volatilities on Nitro Games and Episurf Medical 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 Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitro Games and Episurf Medical.
Diversification Opportunities for Nitro Games and Episurf Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nitro and Episurf is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nitro Games Oyj and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical 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 Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Nitro Games i.e., Nitro Games and Episurf Medical go up and down completely randomly.
Pair Corralation between Nitro Games and Episurf Medical
Assuming the 90 days trading horizon Nitro Games Oyj is expected to generate 0.67 times more return on investment than Episurf Medical. However, Nitro Games Oyj is 1.48 times less risky than Episurf Medical. It trades about 0.15 of its potential returns per unit of risk. Episurf Medical AB is currently generating about 0.08 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nitro Games Oyj vs. Episurf Medical AB
Performance |
| Timeline |
| Nitro Games Oyj |
| Episurf Medical AB |
Nitro Games and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nitro Games and Episurf Medical
The main advantage of trading using opposite Nitro Games and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nitro Games position performs unexpectedly, Episurf Medical 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 Episurf Medical will offset losses from the drop in Episurf Medical'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 |
| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. BICO Group AB | Episurf Medical vs. Bactiguard Holding AB | Episurf Medical vs. Stille 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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