Correlation Between Logan Ridge and Nova Vision
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and Nova Vision 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 Logan Ridge and Nova Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Nova Vision Acquisition, you can compare the effects of market volatilities on Logan Ridge and Nova Vision 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 Logan Ridge with a short position of Nova Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Nova Vision.
Diversification Opportunities for Logan Ridge and Nova Vision
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Logan and Nova is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Nova Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Vision Acquisition and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with Nova Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Vision Acquisition has no effect on the direction of Logan Ridge i.e., Logan Ridge and Nova Vision go up and down completely randomly.
Pair Corralation between Logan Ridge and Nova Vision
Given the investment horizon of 90 days Logan Ridge is expected to generate 12.42 times less return on investment than Nova Vision. But when comparing it to its historical volatility, Logan Ridge Finance is 11.51 times less risky than Nova Vision. It trades about 0.06 of its potential returns per unit of risk. Nova Vision Acquisition is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,149 in Nova Vision Acquisition on August 26, 2024 and sell it today you would earn a total of 2,951 from holding Nova Vision Acquisition or generate 256.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Logan Ridge Finance vs. Nova Vision Acquisition
Performance |
| Timeline |
| Logan Ridge Finance |
| Nova Vision Acquisition |
Logan Ridge and Nova Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Nova Vision
The main advantage of trading using opposite Logan Ridge and Nova Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, Nova Vision 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 Nova Vision will offset losses from the drop in Nova Vision's long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Nova Vision vs. BCE Inc | Nova Vision vs. Radcom | Nova Vision vs. WiMi Hologram Cloud | Nova Vision vs. Qualys Inc |
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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