Correlation Between Ishares Trust and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Ishares Trust 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 Ishares Trust and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ishares Trust and Nexalin Technology, you can compare the effects of market volatilities on Ishares Trust 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 Ishares Trust with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ishares Trust and Nexalin Technology.
Diversification Opportunities for Ishares Trust and Nexalin Technology
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ishares and Nexalin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ishares Trust and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Ishares Trust 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 Ishares Trust 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 Ishares Trust i.e., Ishares Trust and Nexalin Technology go up and down completely randomly.
Pair Corralation between Ishares Trust and Nexalin Technology
Given the investment horizon of 90 days Ishares Trust is expected to under-perform the Nexalin Technology. But the etf apears to be less risky and, when comparing its historical volatility, Ishares Trust is 7.59 times less risky than Nexalin Technology. The etf trades about -0.01 of its potential returns per unit of risk. The Nexalin Technology is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Nexalin Technology on August 30, 2024 and sell it today you would earn a total of 166.00 from holding Nexalin Technology or generate 63.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ishares Trust vs. Nexalin Technology
Performance |
| Timeline |
| Ishares Trust |
| Nexalin Technology |
Ishares Trust and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ishares Trust and Nexalin Technology
The main advantage of trading using opposite Ishares Trust and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ishares Trust 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.| Ishares Trust vs. iShares Tech Breakthrough | Ishares Trust vs. BlackRock Future Health | Ishares Trust vs. iShares Cybersecurity and |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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