Correlation Between Victory Square and The9
Can any of the company-specific risk be diversified away by investing in both Victory Square and The9 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 Victory Square and The9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Square Technologies and The9 Ltd ADR, you can compare the effects of market volatilities on Victory Square and The9 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 Victory Square with a short position of The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Square and The9.
Diversification Opportunities for Victory Square and The9
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Victory and The9 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Victory Square Technologies and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR and Victory Square 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 Victory Square Technologies are associated (or correlated) with The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of Victory Square i.e., Victory Square and The9 go up and down completely randomly.
Pair Corralation between Victory Square and The9
Assuming the 90 days horizon Victory Square Technologies is expected to generate 1.35 times more return on investment than The9. However, Victory Square is 1.35 times more volatile than The9 Ltd ADR. It trades about 0.2 of its potential returns per unit of risk. The9 Ltd ADR is currently generating about 0.24 per unit of risk. If you would invest 7.15 in Victory Square Technologies on August 24, 2024 and sell it today you would earn a total of 2.05 from holding Victory Square Technologies or generate 28.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Victory Square Technologies vs. The9 Ltd ADR
Performance |
| Timeline |
| Victory Square Techn |
| The9 Ltd ADR |
Victory Square and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Square and The9
The main advantage of trading using opposite Victory Square and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Square position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9's long position.| Victory Square vs. GameSquare Holdings | Victory Square vs. Nexon Co Ltd | Victory Square vs. i3 Interactive | Victory Square vs. IGG Inc |
| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |