Correlation Between Nitro Games and Gaming Corps

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

By analyzing existing cross correlation between Nitro Games Oyj and Gaming Corps AB, you can compare the effects of market volatilities on Nitro Games and Gaming Corps 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 Nitro Games with a short position of Gaming Corps. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitro Games and Gaming Corps.

Diversification Opportunities for Nitro Games and Gaming Corps

-0.25

Correlation Coefficient

Nitro Games  Gaming Corps

Very good diversification

The 3 months correlation between Nitro and Gaming is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nitro Games Oyj and Gaming Corps AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Corps AB and Nitro 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 Nitro Games Oyj are associated (or correlated) with Gaming Corps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Corps AB has no effect on the direction of Nitro Games i.e., Nitro Games and Gaming Corps go up and down completely randomly.

Pair Corralation between Nitro Games and Gaming Corps

Assuming the 90 days trading horizon Nitro Games Oyj is expected to under-perform the Gaming Corps. But the stock apears to be less risky and, when comparing its historical volatility, Nitro Games Oyj is 1.38 times less risky than Gaming Corps. The stock trades about -0.02 of its potential returns per unit of risk. The Gaming Corps AB is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  103.00  in Gaming Corps AB on April 23, 2025 and sell it today you would earn a total of  57.00  from holding Gaming Corps AB or generate 55.34% return on investment over 90 days.

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

Nitro Games Oyj  vs.  Gaming Corps AB

Nitro Games Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nitro Games Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nitro Games is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Gaming Corps AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gaming Corps AB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Gaming Corps unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nitro Games and Gaming Corps

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

The idea behind Nitro Games Oyj and Gaming Corps AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.