Correlation Between Nuburu and ATS
Can any of the company-specific risk be diversified away by investing in both Nuburu and ATS 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 Nuburu and ATS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuburu Inc and ATS Corporation, you can compare the effects of market volatilities on Nuburu and ATS 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 Nuburu with a short position of ATS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuburu and ATS.
Diversification Opportunities for Nuburu and ATS
Good diversification
The 3 months correlation between Nuburu and ATS is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nuburu Inc and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation and Nuburu 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 Nuburu Inc are associated (or correlated) with ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Nuburu i.e., Nuburu and ATS go up and down completely randomly.
Pair Corralation between Nuburu and ATS
Given the investment horizon of 90 days Nuburu Inc is expected to generate 8.22 times more return on investment than ATS. However, Nuburu is 8.22 times more volatile than ATS Corporation. It trades about 0.07 of its potential returns per unit of risk. ATS Corporation is currently generating about 0.07 per unit of risk. If you would invest 45.00 in Nuburu Inc on September 5, 2024 and sell it today you would lose (1.00) from holding Nuburu Inc or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuburu Inc vs. ATS Corp.
Performance |
| Timeline |
| Nuburu Inc |
| ATS Corporation |
Nuburu and ATS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuburu and ATS
The main advantage of trading using opposite Nuburu and ATS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuburu position performs unexpectedly, ATS 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 ATS will offset losses from the drop in ATS's long position.| Nuburu vs. Laser Photonics | Nuburu vs. JE Cleantech Holdings | Nuburu vs. Reelcause | Nuburu vs. Shapeways Holdings, Common |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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