Correlation Between Elcom International and NCino
Can any of the company-specific risk be diversified away by investing in both Elcom International and NCino 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 Elcom International and NCino into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom International and nCino Inc, you can compare the effects of market volatilities on Elcom International and NCino 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 Elcom International with a short position of NCino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom International and NCino.
Diversification Opportunities for Elcom International and NCino
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elcom and NCino is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Elcom International and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc and Elcom International 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 Elcom International are associated (or correlated) with NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of Elcom International i.e., Elcom International and NCino go up and down completely randomly.
Pair Corralation between Elcom International and NCino
Given the investment horizon of 90 days Elcom International is expected to under-perform the NCino. But the pink sheet apears to be less risky and, when comparing its historical volatility, Elcom International is 2.15 times less risky than NCino. The pink sheet trades about -0.15 of its potential returns per unit of risk. The nCino Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,447 in nCino Inc on August 28, 2024 and sell it today you would earn a total of 1,773 from holding nCino Inc or generate 72.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 9.09% |
| Values | Daily Returns |
Elcom International vs. nCino Inc
Performance |
| Timeline |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| nCino Inc |
Elcom International and NCino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom International and NCino
The main advantage of trading using opposite Elcom International and NCino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom International position performs unexpectedly, NCino 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 NCino will offset losses from the drop in NCino's long position.| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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