Correlation Between Alcon AG and Nexgel
Can any of the company-specific risk be diversified away by investing in both Alcon AG and Nexgel 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 Alcon AG and Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcon AG and Nexgel Inc, you can compare the effects of market volatilities on Alcon AG and Nexgel 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 Alcon AG with a short position of Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcon AG and Nexgel.
Diversification Opportunities for Alcon AG and Nexgel
Pay attention - limited upside
The 3 months correlation between Alcon and Nexgel is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and Alcon AG 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 Alcon AG are associated (or correlated) with Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Alcon AG i.e., Alcon AG and Nexgel go up and down completely randomly.
Pair Corralation between Alcon AG and Nexgel
Considering the 90-day investment horizon Alcon AG is expected to under-perform the Nexgel. But the stock apears to be less risky and, when comparing its historical volatility, Alcon AG is 3.12 times less risky than Nexgel. The stock trades about -0.29 of its potential returns per unit of risk. The Nexgel Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Nexgel Inc on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Nexgel Inc or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcon AG vs. Nexgel Inc
Performance |
| Timeline |
| Alcon AG |
| Nexgel Inc |
Alcon AG and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcon AG and Nexgel
The main advantage of trading using opposite Alcon AG and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcon AG position performs unexpectedly, Nexgel 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 Nexgel will offset losses from the drop in Nexgel's long position.| Alcon AG vs. Teleflex Incorporated | Alcon AG vs. West Pharmaceutical Services | Alcon AG vs. ResMed Inc | Alcon AG vs. ICU Medical |
| Nexgel vs. Teleflex Incorporated | Nexgel vs. The Cooper Companies, | Nexgel vs. West Pharmaceutical Services | Nexgel vs. ICU Medical |
Check out your portfolio center.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |