Correlation Between Nintendo and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both Nintendo and Boyaa Interactive 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 Nintendo and Boyaa Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nintendo Co and Boyaa Interactive International, you can compare the effects of market volatilities on Nintendo and Boyaa Interactive 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 Nintendo with a short position of Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nintendo and Boyaa Interactive.
Diversification Opportunities for Nintendo and Boyaa Interactive
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nintendo and Boyaa is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nintendo Co and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive and Nintendo 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 Nintendo Co are associated (or correlated) with Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of Nintendo i.e., Nintendo and Boyaa Interactive go up and down completely randomly.
Pair Corralation between Nintendo and Boyaa Interactive
Assuming the 90 days horizon Nintendo is expected to generate 2.39 times less return on investment than Boyaa Interactive. But when comparing it to its historical volatility, Nintendo Co is 2.88 times less risky than Boyaa Interactive. It trades about 0.1 of its potential returns per unit of risk. Boyaa Interactive International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Boyaa Interactive International on November 28, 2024 and sell it today you would earn a total of 20.00 from holding Boyaa Interactive International or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nintendo Co vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| Nintendo |
| Boyaa Interactive |
Nintendo and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nintendo and Boyaa Interactive
The main advantage of trading using opposite Nintendo and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nintendo position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| Nintendo vs. Hua Hong Semiconductor | Nintendo vs. US Foods Holding | Nintendo vs. SENECA FOODS A | Nintendo vs. Lattice Semiconductor |
| Boyaa Interactive vs. Yanzhou Coal Mining | Boyaa Interactive vs. Transport International Holdings | Boyaa Interactive vs. PARKEN SPORT ENT | Boyaa Interactive vs. MINCO SILVER |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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