Correlation Between G Medical and Nexgel
Can any of the company-specific risk be diversified away by investing in both G Medical 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 G Medical and Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Medical Innovations and Nexgel Inc, you can compare the effects of market volatilities on G Medical 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 G Medical with a short position of Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Medical and Nexgel.
Diversification Opportunities for G Medical and Nexgel
Very good diversification
The 3 months correlation between GMVD and Nexgel is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding G Medical Innovations and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and G Medical 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 G Medical Innovations 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 G Medical i.e., G Medical and Nexgel go up and down completely randomly.
Pair Corralation between G Medical and Nexgel
If you would invest 295.00 in Nexgel Inc on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Nexgel Inc or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
G Medical Innovations vs. Nexgel Inc
Performance |
| Timeline |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nexgel Inc |
G Medical and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Medical and Nexgel
The main advantage of trading using opposite G Medical and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Medical 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.| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel Inc |
| Nexgel vs. Heartbeam | Nexgel vs. EUDA Health Holdings | Nexgel vs. Nutex Health | Nexgel vs. Healthcare Triangle |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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