Correlation Between Azure Holding and NuGene International
Can any of the company-specific risk be diversified away by investing in both Azure Holding and NuGene International 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 Azure Holding and NuGene International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azure Holding Group and NuGene International, you can compare the effects of market volatilities on Azure Holding and NuGene International 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 Azure Holding with a short position of NuGene International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azure Holding and NuGene International.
Diversification Opportunities for Azure Holding and NuGene International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Azure and NuGene is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Azure Holding Group and NuGene International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuGene International and Azure Holding 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 Azure Holding Group are associated (or correlated) with NuGene International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuGene International has no effect on the direction of Azure Holding i.e., Azure Holding and NuGene International go up and down completely randomly.
Pair Corralation between Azure Holding and NuGene International
Given the investment horizon of 90 days Azure Holding Group is expected to generate 4.88 times more return on investment than NuGene International. However, Azure Holding is 4.88 times more volatile than NuGene International. It trades about 0.09 of its potential returns per unit of risk. NuGene International is currently generating about 0.03 per unit of risk. If you would invest 0.11 in Azure Holding Group on September 12, 2024 and sell it today you would earn a total of 11.89 from holding Azure Holding Group or generate 10809.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azure Holding Group vs. NuGene International
Performance |
| Timeline |
| Azure Holding Group |
| NuGene International |
Azure Holding and NuGene International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azure Holding and NuGene International
The main advantage of trading using opposite Azure Holding and NuGene International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azure Holding position performs unexpectedly, NuGene International 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 NuGene International will offset losses from the drop in NuGene International's long position.| Azure Holding vs. Arhaus Inc | Azure Holding vs. Floor Decor Holdings | Azure Holding vs. Live Ventures | Azure Holding vs. ATT Inc |
| NuGene International vs. Green Planet Bio | NuGene International vs. Azure Holding Group | NuGene International vs. Four Leaf Acquisition | NuGene International vs. Opus Magnum Ameris |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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