Correlation Between Forian and Nexgel
Can any of the company-specific risk be diversified away by investing in both Forian and Nexgel 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 Forian and Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forian Inc and Nexgel Inc, you can compare the effects of market volatilities on Forian and Nexgel 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 Forian with a short position of Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forian and Nexgel.
Diversification Opportunities for Forian and Nexgel
Very good diversification
The 3 months correlation between Forian and Nexgel is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and Forian 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 Forian Inc are associated (or correlated) with Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Forian i.e., Forian and Nexgel go up and down completely randomly.
Pair Corralation between Forian and Nexgel
Given the investment horizon of 90 days Forian is expected to generate 4.84 times less return on investment than Nexgel. But when comparing it to its historical volatility, Forian Inc is 2.11 times less risky than Nexgel. It trades about 0.07 of its potential returns per unit of risk. Nexgel Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 288.00 in Nexgel Inc on August 31, 2024 and sell it today you would earn a total of 44.00 from holding Nexgel Inc or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forian Inc vs. Nexgel Inc
Performance |
| Timeline |
| Forian Inc |
| Nexgel Inc |
Forian and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forian and Nexgel
The main advantage of trading using opposite Forian and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forian position performs unexpectedly, Nexgel 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 Nexgel will offset losses from the drop in Nexgel's long position.| Forian vs. HealthStream | Forian vs. National Research Corp | Forian vs. HealthEquity | Forian vs. Health Catalyst |
| Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |