Correlation Between Avinger and Nexgel
Can any of the company-specific risk be diversified away by investing in both Avinger 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 Avinger and Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avinger and Nexgel Inc, you can compare the effects of market volatilities on Avinger 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 Avinger with a short position of Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avinger and Nexgel.
Diversification Opportunities for Avinger and Nexgel
Excellent diversification
The 3 months correlation between Avinger and Nexgel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and Avinger 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 Avinger 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 Avinger i.e., Avinger and Nexgel go up and down completely randomly.
Pair Corralation between Avinger and Nexgel
Given the investment horizon of 90 days Avinger is expected to under-perform the Nexgel. But the stock apears to be less risky and, when comparing its historical volatility, Avinger is 1.47 times less risky than Nexgel. The stock trades about -0.02 of its potential returns per unit of risk. The Nexgel Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 295.00 in Nexgel Inc on August 27, 2024 and sell it today you would earn a total of 42.00 from holding Nexgel Inc or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avinger vs. Nexgel Inc
Performance |
| Timeline |
| Avinger |
| Nexgel Inc |
Avinger and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avinger and Nexgel
The main advantage of trading using opposite Avinger and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avinger 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.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
| Nexgel vs. Heartbeam | Nexgel vs. EUDA Health Holdings | Nexgel vs. Nutex Health | Nexgel vs. Healthcare Triangle |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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