Correlation Between Now and Surge Battery
Can any of the company-specific risk be diversified away by investing in both Now and Surge Battery 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 Now and Surge Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Now Inc and Surge Battery Metals, you can compare the effects of market volatilities on Now and Surge Battery 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 Now with a short position of Surge Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and Surge Battery.
Diversification Opportunities for Now and Surge Battery
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Now and Surge is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and Surge Battery Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Battery Metals and Now 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 Now Inc are associated (or correlated) with Surge Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Battery Metals has no effect on the direction of Now i.e., Now and Surge Battery go up and down completely randomly.
Pair Corralation between Now and Surge Battery
Given the investment horizon of 90 days Now Inc is expected to generate 0.86 times more return on investment than Surge Battery. However, Now Inc is 1.16 times less risky than Surge Battery. It trades about 0.29 of its potential returns per unit of risk. Surge Battery Metals is currently generating about -0.12 per unit of risk. If you would invest 1,302 in Now Inc on November 5, 2024 and sell it today you would earn a total of 186.00 from holding Now Inc or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Now Inc vs. Surge Battery Metals
Performance |
| Timeline |
| Now Inc |
| Surge Battery Metals |
Now and Surge Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and Surge Battery
The main advantage of trading using opposite Now and Surge Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, Surge Battery 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 Surge Battery will offset losses from the drop in Surge Battery's long position.| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
| Surge Battery vs. Nevada Sunrise Gold | Surge Battery vs. Critical Elements | Surge Battery vs. Lithium Ionic Corp | Surge Battery vs. Green Technology Metals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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