Correlation Between Evolent Health and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Evolent Health and Nexalin Technology 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 Evolent Health and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Nexalin Technology, you can compare the effects of market volatilities on Evolent Health and Nexalin Technology 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 Evolent Health with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Nexalin Technology.
Diversification Opportunities for Evolent Health and Nexalin Technology
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Evolent and Nexalin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Evolent Health 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 Evolent Health are associated (or correlated) with Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of Evolent Health i.e., Evolent Health and Nexalin Technology go up and down completely randomly.
Pair Corralation between Evolent Health and Nexalin Technology
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Nexalin Technology. But the stock apears to be less risky and, when comparing its historical volatility, Evolent Health is 3.18 times less risky than Nexalin Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Nexalin Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Nexalin Technology on November 9, 2024 and sell it today you would earn a total of 263.00 from holding Nexalin Technology or generate 250.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Nexalin Technology
Performance |
| Timeline |
| Evolent Health |
| Nexalin Technology |
Evolent Health and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Nexalin Technology
The main advantage of trading using opposite Evolent Health and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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