Correlation Between Nitro Games and Sileon AB
Can any of the company-specific risk be diversified away by investing in both Nitro Games and Sileon 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 Sileon 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 Sileon AB, you can compare the effects of market volatilities on Nitro Games and Sileon 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 Sileon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitro Games and Sileon AB.
Diversification Opportunities for Nitro Games and Sileon AB
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nitro and Sileon is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nitro Games Oyj and Sileon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sileon 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 Sileon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sileon AB has no effect on the direction of Nitro Games i.e., Nitro Games and Sileon AB go up and down completely randomly.
Pair Corralation between Nitro Games and Sileon AB
Assuming the 90 days trading horizon Nitro Games Oyj is expected to generate 0.83 times more return on investment than Sileon AB. However, Nitro Games Oyj is 1.2 times less risky than Sileon AB. It trades about -0.03 of its potential returns per unit of risk. Sileon AB is currently generating about -0.09 per unit of risk. If you would invest 1,100 in Nitro Games Oyj on October 16, 2024 and sell it today you would lose (856.00) from holding Nitro Games Oyj or give up 77.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nitro Games Oyj vs. Sileon AB
Performance |
| Timeline |
| Nitro Games Oyj |
| Sileon AB |
Nitro Games and Sileon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nitro Games and Sileon AB
The main advantage of trading using opposite Nitro Games and Sileon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nitro Games position performs unexpectedly, Sileon 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 Sileon AB will offset losses from the drop in Sileon AB's long position.| Nitro Games vs. Stillfront Group AB | Nitro Games vs. G5 Entertainment publ | Nitro Games vs. Enad Global 7 | Nitro Games vs. Starbreeze AB |
| Sileon AB vs. Nitro Games Oyj | Sileon AB vs. Spago Nanomedical AB | Sileon AB vs. FormPipe Software AB | Sileon AB vs. Scandic Hotels Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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