Correlation Between Nexters Warrant and Surgepays

Can any of the company-specific risk be diversified away by investing in both Nexters Warrant and Surgepays 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 Nexters Warrant and Surgepays into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nexters Warrant and Surgepays, you can compare the effects of market volatilities on Nexters Warrant and Surgepays 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 Nexters Warrant with a short position of Surgepays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexters Warrant and Surgepays.

Diversification Opportunities for Nexters Warrant and Surgepays

-0.15

Correlation Coefficient

Nexters Warrant  Surgepays

Good diversification

The 3 months correlation between Nexters and Surgepays is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nexters Warrant and Surgepays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgepays and Nexters Warrant 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 Nexters Warrant are associated (or correlated) with Surgepays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgepays has no effect on the direction of Nexters Warrant i.e., Nexters Warrant and Surgepays go up and down completely randomly.

Pair Corralation between Nexters Warrant and Surgepays

Assuming the 90 days horizon Nexters Warrant is expected to under-perform the Surgepays. In addition to that, Nexters Warrant is 3.39 times more volatile than Surgepays. It trades about -0.08 of its total potential returns per unit of risk. Surgepays is currently generating about 0.06 per unit of volatility. If you would invest  165.00  in Surgepays on September 14, 2024 and sell it today you would earn a total of  19.00  from holding Surgepays or generate 11.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	47.62%
Values	Daily Returns

Nexters Warrant  vs.  Surgepays

Nexters Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nexters Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Surgepays

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Surgepays are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Surgepays reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nexters Warrant and Surgepays

The main advantage of trading using opposite Nexters Warrant and Surgepays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexters Warrant position performs unexpectedly, Surgepays 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 Surgepays will offset losses from the drop in Surgepays' long position.

The idea behind Nexters Warrant and Surgepays pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.