Correlation Between GDEV and Nexters Warrant

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

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

Diversification Opportunities for GDEV and Nexters Warrant

-0.25

Correlation Coefficient

GDEV  Nexters Warrant

Very good diversification

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

Pair Corralation between GDEV and Nexters Warrant

Given the investment horizon of 90 days GDEV Inc is expected to generate 0.33 times more return on investment than Nexters Warrant. However, GDEV Inc is 3.02 times less risky than Nexters Warrant. It trades about -0.02 of its potential returns per unit of risk. Nexters Warrant is currently generating about -0.1 per unit of risk. If you would invest  1,505  in GDEV Inc on December 29, 2024 and sell it today you would lose (295.00) from holding GDEV Inc or give up 19.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	26.23%
Values	Daily Returns

GDEV Inc  vs.  Nexters Warrant

GDEV Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days GDEV Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Nexters Warrant

Risk-Adjusted Performance

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 fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with GDEV and Nexters Warrant

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

The idea behind GDEV Inc and Nexters Warrant 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.