Correlation Between Vivid Games and NGG
Can any of the company-specific risk be diversified away by investing in both Vivid Games and NGG 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 Vivid Games and NGG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivid Games SA and NGG, you can compare the effects of market volatilities on Vivid Games and NGG 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 Vivid Games with a short position of NGG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivid Games and NGG.
Diversification Opportunities for Vivid Games and NGG
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vivid and NGG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Vivid Games SA and NGG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGG and Vivid 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 Vivid Games SA are associated (or correlated) with NGG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGG has no effect on the direction of Vivid Games i.e., Vivid Games and NGG go up and down completely randomly.
Pair Corralation between Vivid Games and NGG
Assuming the 90 days trading horizon Vivid Games is expected to generate 84.02 times less return on investment than NGG. But when comparing it to its historical volatility, Vivid Games SA is 3.93 times less risky than NGG. It trades about 0.01 of its potential returns per unit of risk. NGG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2.46 in NGG on October 26, 2024 and sell it today you would earn a total of 0.54 from holding NGG or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivid Games SA vs. NGG
Performance |
| Timeline |
| Vivid Games SA |
| NGG |
Vivid Games and NGG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivid Games and NGG
The main advantage of trading using opposite Vivid Games and NGG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivid Games position performs unexpectedly, NGG 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 NGG will offset losses from the drop in NGG's long position.| Vivid Games vs. Igoria Trade SA | Vivid Games vs. UniCredit SpA | Vivid Games vs. MW Trade SA | Vivid Games vs. Echo Investment SA |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |