Correlation Between Thumzup Media and Nexxen International
Can any of the company-specific risk be diversified away by investing in both Thumzup Media and Nexxen International 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 Thumzup Media and Nexxen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thumzup Media and Nexxen International, you can compare the effects of market volatilities on Thumzup Media and Nexxen International 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 Thumzup Media with a short position of Nexxen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thumzup Media and Nexxen International.
Diversification Opportunities for Thumzup Media and Nexxen International
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thumzup and Nexxen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Thumzup Media and Nexxen International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexxen International and Thumzup Media 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 Thumzup Media are associated (or correlated) with Nexxen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexxen International has no effect on the direction of Thumzup Media i.e., Thumzup Media and Nexxen International go up and down completely randomly.
Pair Corralation between Thumzup Media and Nexxen International
Given the investment horizon of 90 days Thumzup Media is expected to under-perform the Nexxen International. In addition to that, Thumzup Media is 1.64 times more volatile than Nexxen International. It trades about -0.18 of its total potential returns per unit of risk. Nexxen International is currently generating about 0.2 per unit of volatility. If you would invest 800.00 in Nexxen International on August 24, 2024 and sell it today you would earn a total of 191.00 from holding Nexxen International or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thumzup Media vs. Nexxen International
Performance |
| Timeline |
| Thumzup Media |
| Nexxen International |
Thumzup Media and Nexxen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thumzup Media and Nexxen International
The main advantage of trading using opposite Thumzup Media and Nexxen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thumzup Media position performs unexpectedly, Nexxen International 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 Nexxen International will offset losses from the drop in Nexxen International's long position.| Thumzup Media vs. WiMi Hologram Cloud | Thumzup Media vs. National CineMedia | Thumzup Media vs. Baosheng Media Group |
| Nexxen International vs. National Vision Holdings | Nexxen International vs. SunOpta | Nexxen International vs. Coupang LLC | Nexxen International vs. Lululemon Athletica |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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