Correlation Between Medtronic PLC and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Medtronic PLC 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 Medtronic PLC and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medtronic PLC and Nexalin Technology, you can compare the effects of market volatilities on Medtronic PLC 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 Medtronic PLC with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medtronic PLC and Nexalin Technology.
Diversification Opportunities for Medtronic PLC and Nexalin Technology
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medtronic and Nexalin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC i.e., Medtronic PLC and Nexalin Technology go up and down completely randomly.
Pair Corralation between Medtronic PLC and Nexalin Technology
Considering the 90-day investment horizon Medtronic PLC is expected to under-perform the Nexalin Technology. But the stock apears to be less risky and, when comparing its historical volatility, Medtronic PLC is 17.72 times less risky than Nexalin Technology. The stock trades about -0.15 of its potential returns per unit of risk. The Nexalin Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Nexalin Technology on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Nexalin Technology or generate 72.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medtronic PLC vs. Nexalin Technology
Performance |
| Timeline |
| Medtronic PLC |
| Nexalin Technology |
Medtronic PLC and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medtronic PLC and Nexalin Technology
The main advantage of trading using opposite Medtronic PLC and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medtronic PLC 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.| Medtronic PLC vs. Edwards Lifesciences Corp | Medtronic PLC vs. Abbott Laboratories | Medtronic PLC vs. Boston Scientific Corp | Medtronic PLC vs. Zimmer Biomet Holdings |
| Nexalin Technology vs. NexGel Warrant | Nexalin Technology vs. NLS Pharmaceutics AG | Nexalin Technology vs. Inspira Technologies Oxy |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |