Correlation Between SPDR SP and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both SPDR SP 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 SPDR SP and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Kensho and Nexalin Technology, you can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Nexalin Technology.
Diversification Opportunities for SPDR SP and Nexalin Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Nexalin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Kensho and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and SPDR SP 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 SPDR SP Kensho 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 SPDR SP i.e., SPDR SP and Nexalin Technology go up and down completely randomly.
Pair Corralation between SPDR SP and Nexalin Technology
Given the investment horizon of 90 days SPDR SP is expected to generate 2.85 times less return on investment than Nexalin Technology. But when comparing it to its historical volatility, SPDR SP Kensho is 4.92 times less risky than Nexalin Technology. It trades about 0.37 of its potential returns per unit of risk. Nexalin Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 316.00 in Nexalin Technology on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Nexalin Technology or generate 32.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Kensho vs. Nexalin Technology
Performance |
| Timeline |
| SPDR SP Kensho |
| Nexalin Technology |
SPDR SP and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Nexalin Technology
The main advantage of trading using opposite SPDR SP and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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.| SPDR SP vs. Nexalin Technology | SPDR SP vs. Kilroy Realty Corp | SPDR SP vs. Highwoods Properties | SPDR SP vs. Karat Packaging |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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