Correlation Between Glaukos Corp and Nanomix
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and Nanomix 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 Glaukos Corp and Nanomix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and Nanomix, you can compare the effects of market volatilities on Glaukos Corp and Nanomix 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 Glaukos Corp with a short position of Nanomix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Nanomix.
Diversification Opportunities for Glaukos Corp and Nanomix
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glaukos and Nanomix is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Nanomix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanomix and Glaukos Corp 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 Glaukos Corp are associated (or correlated) with Nanomix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanomix has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and Nanomix go up and down completely randomly.
Pair Corralation between Glaukos Corp and Nanomix
Given the investment horizon of 90 days Glaukos Corp is expected to generate 0.18 times more return on investment than Nanomix. However, Glaukos Corp is 5.7 times less risky than Nanomix. It trades about 0.1 of its potential returns per unit of risk. Nanomix is currently generating about 0.02 per unit of risk. If you would invest 4,551 in Glaukos Corp on September 3, 2024 and sell it today you would earn a total of 9,814 from holding Glaukos Corp or generate 215.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaukos Corp vs. Nanomix
Performance |
| Timeline |
| Glaukos Corp |
| Nanomix |
Glaukos Corp and Nanomix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and Nanomix
The main advantage of trading using opposite Glaukos Corp and Nanomix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, Nanomix 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 Nanomix will offset losses from the drop in Nanomix's long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
| Nanomix vs. Anteris Technologies | Nanomix vs. Armm Inc | Nanomix vs. Cellink AB | Nanomix vs. Bone Biologics Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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