Correlation Between G8 EDUCATION and NEXON

Can any of the company-specific risk be diversified away by investing in both G8 EDUCATION and NEXON 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 G8 EDUCATION and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between G8 EDUCATION and NEXON Co, you can compare the effects of market volatilities on G8 EDUCATION and NEXON 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 G8 EDUCATION with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of G8 EDUCATION and NEXON.

Diversification Opportunities for G8 EDUCATION and NEXON

-0.53

Correlation Coefficient

G8 EDUCATION  NEXON

Excellent diversification

The 3 months correlation between 3EAG and NEXON is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding G8 EDUCATION and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and G8 EDUCATION 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 G8 EDUCATION are associated (or correlated) with NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of G8 EDUCATION i.e., G8 EDUCATION and NEXON go up and down completely randomly.

Pair Corralation between G8 EDUCATION and NEXON

Assuming the 90 days trading horizon G8 EDUCATION is expected to under-perform the NEXON. But the stock apears to be less risky and, when comparing its historical volatility, G8 EDUCATION is 1.44 times less risky than NEXON. The stock trades about -0.25 of its potential returns per unit of risk. The NEXON Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,293  in NEXON Co on April 20, 2025 and sell it today you would earn a total of  297.00  from holding NEXON Co or generate 22.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

G8 EDUCATION  vs.  NEXON Co

G8 EDUCATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days G8 EDUCATION 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

NEXON

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NEXON Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, NEXON unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with G8 EDUCATION and NEXON

The main advantage of trading using opposite G8 EDUCATION and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G8 EDUCATION position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.

The idea behind G8 EDUCATION and NEXON Co 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.