Correlation Between Chardan NexTech and Nxu
Can any of the company-specific risk be diversified away by investing in both Chardan NexTech and Nxu 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 Chardan NexTech and Nxu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chardan NexTech Acquisition and Nxu Inc, you can compare the effects of market volatilities on Chardan NexTech and Nxu 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 Chardan NexTech with a short position of Nxu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Nxu.
Diversification Opportunities for Chardan NexTech and Nxu
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chardan and Nxu is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Nxu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxu Inc and Chardan NexTech 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 Chardan NexTech Acquisition are associated (or correlated) with Nxu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxu Inc has no effect on the direction of Chardan NexTech i.e., Chardan NexTech and Nxu go up and down completely randomly.
Pair Corralation between Chardan NexTech and Nxu
Given the investment horizon of 90 days Chardan NexTech Acquisition is expected to generate 0.81 times more return on investment than Nxu. However, Chardan NexTech Acquisition is 1.23 times less risky than Nxu. It trades about -0.11 of its potential returns per unit of risk. Nxu Inc is currently generating about -0.21 per unit of risk. If you would invest 536.00 in Chardan NexTech Acquisition on August 28, 2024 and sell it today you would lose (144.00) from holding Chardan NexTech Acquisition or give up 26.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chardan NexTech Acquisition vs. Nxu Inc
Performance |
| Timeline |
| Chardan NexTech Acqu |
| Nxu Inc |
Chardan NexTech and Nxu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chardan NexTech and Nxu
The main advantage of trading using opposite Chardan NexTech and Nxu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech position performs unexpectedly, Nxu 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 Nxu will offset losses from the drop in Nxu's long position.| Chardan NexTech vs. Polar Power | Chardan NexTech vs. Eos Energy Enterprises | Chardan NexTech vs. Sunrise New Energy | Chardan NexTech vs. AFC Energy plc |
| Nxu vs. Chardan NexTech Acquisition | Nxu vs. Polar Power | Nxu vs. Eos Energy Enterprises | Nxu vs. Sunrise New Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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