Correlation Between Murphy Canyon and Nubia Brand
Can any of the company-specific risk be diversified away by investing in both Murphy Canyon and Nubia Brand 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 Murphy Canyon and Nubia Brand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murphy Canyon Acquisition and Nubia Brand International, you can compare the effects of market volatilities on Murphy Canyon and Nubia Brand 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 Murphy Canyon with a short position of Nubia Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murphy Canyon and Nubia Brand.
Diversification Opportunities for Murphy Canyon and Nubia Brand
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Murphy and Nubia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Murphy Canyon Acquisition and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International and Murphy Canyon 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 Murphy Canyon Acquisition are associated (or correlated) with Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of Murphy Canyon i.e., Murphy Canyon and Nubia Brand go up and down completely randomly.
Pair Corralation between Murphy Canyon and Nubia Brand
Assuming the 90 days horizon Murphy Canyon is expected to generate 1.16 times less return on investment than Nubia Brand. But when comparing it to its historical volatility, Murphy Canyon Acquisition is 1.89 times less risky than Nubia Brand. It trades about 0.1 of its potential returns per unit of risk. Nubia Brand International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,015 in Nubia Brand International on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Nubia Brand International or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.68% |
| Values | Daily Returns |
Murphy Canyon Acquisition vs. Nubia Brand International
Performance |
| Timeline |
| Murphy Canyon Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nubia Brand International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Murphy Canyon and Nubia Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murphy Canyon and Nubia Brand
The main advantage of trading using opposite Murphy Canyon and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murphy Canyon position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand's long position.| Murphy Canyon vs. Scandinavian Tobacco Group | Murphy Canyon vs. Constellation Brands Class | Murphy Canyon vs. Kura Sushi USA | Murphy Canyon vs. Keurig Dr Pepper |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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