Correlation Between Nexters Warrant and Holley

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

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

Diversification Opportunities for Nexters Warrant and Holley

-0.43

Correlation Coefficient

Nexters Warrant  Holley

Very good diversification

The 3 months correlation between Nexters and Holley is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nexters Warrant and Holley Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holley Inc 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 Holley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holley Inc has no effect on the direction of Nexters Warrant i.e., Nexters Warrant and Holley go up and down completely randomly.

Pair Corralation between Nexters Warrant and Holley

Assuming the 90 days horizon Nexters Warrant is expected to generate 11.45 times less return on investment than Holley. In addition to that, Nexters Warrant is 4.12 times more volatile than Holley Inc. It trades about 0.0 of its total potential returns per unit of risk. Holley Inc is currently generating about 0.07 per unit of volatility. If you would invest  177.00  in Holley Inc on May 7, 2025 and sell it today you would earn a total of  22.00  from holding Holley Inc or generate 12.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	52.46%
Values	Daily Returns

Nexters Warrant  vs.  Holley Inc

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 fairly stable basic indicators, Nexters Warrant is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Holley Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Holley Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Holley showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nexters Warrant and Holley

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

The idea behind Nexters Warrant and Holley Inc 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.