Correlation Between Now and SPRINT
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By analyzing existing cross correlation between Now Inc and SPRINT NEXTEL P, you can compare the effects of market volatilities on Now and SPRINT 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 SPRINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and SPRINT.
Diversification Opportunities for Now and SPRINT
Very good diversification
The 3 months correlation between Now and SPRINT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and SPRINT NEXTEL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPRINT NEXTEL P 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 SPRINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPRINT NEXTEL P has no effect on the direction of Now i.e., Now and SPRINT go up and down completely randomly.
Pair Corralation between Now and SPRINT
Given the investment horizon of 90 days Now Inc is expected to generate 6.25 times more return on investment than SPRINT. However, Now is 6.25 times more volatile than SPRINT NEXTEL P. It trades about 0.07 of its potential returns per unit of risk. SPRINT NEXTEL P is currently generating about -0.02 per unit of risk. If you would invest 969.00 in Now Inc on November 9, 2024 and sell it today you would earn a total of 461.00 from holding Now Inc or generate 47.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.05% |
| Values | Daily Returns |
Now Inc vs. SPRINT NEXTEL P
Performance |
| Timeline |
| Now Inc |
| SPRINT NEXTEL P |
Now and SPRINT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and SPRINT
The main advantage of trading using opposite Now and SPRINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, SPRINT 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 SPRINT will offset losses from the drop in SPRINT's long position.| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
| SPRINT vs. Yuexiu Transport Infrastructure | SPRINT vs. Sweetgreen | SPRINT vs. Catalyst Metals Limited | SPRINT vs. American Hotel Income |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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