Correlation Between Bluejay Diagnostics and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Bluejay Diagnostics and Nexalin Technology 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 Bluejay Diagnostics and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluejay Diagnostics and Nexalin Technology, you can compare the effects of market volatilities on Bluejay Diagnostics and Nexalin Technology 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 Bluejay Diagnostics with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and Nexalin Technology.
Diversification Opportunities for Bluejay Diagnostics and Nexalin Technology
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluejay and Nexalin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and Nexalin Technology go up and down completely randomly.
Pair Corralation between Bluejay Diagnostics and Nexalin Technology
Given the investment horizon of 90 days Bluejay Diagnostics is expected to under-perform the Nexalin Technology. In addition to that, Bluejay Diagnostics is 1.33 times more volatile than Nexalin Technology. It trades about -0.01 of its total potential returns per unit of risk. Nexalin Technology is currently generating about 0.19 per unit of volatility. If you would invest 262.00 in Nexalin Technology on October 23, 2024 and sell it today you would earn a total of 54.00 from holding Nexalin Technology or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bluejay Diagnostics vs. Nexalin Technology
Performance |
| Timeline |
| Bluejay Diagnostics |
| Nexalin Technology |
Bluejay Diagnostics and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluejay Diagnostics and Nexalin Technology
The main advantage of trading using opposite Bluejay Diagnostics and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluejay Diagnostics position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
| Nexalin Technology vs. Ainos Inc | Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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