Correlation Between Nano Labs and CVD Equipment
Can any of the company-specific risk be diversified away by investing in both Nano Labs and CVD Equipment 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 Nano Labs and CVD Equipment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Labs and CVD Equipment, you can compare the effects of market volatilities on Nano Labs and CVD Equipment 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 Nano Labs with a short position of CVD Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Labs and CVD Equipment.
Diversification Opportunities for Nano Labs and CVD Equipment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nano and CVD is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and CVD Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVD Equipment and Nano Labs 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 Nano Labs are associated (or correlated) with CVD Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVD Equipment has no effect on the direction of Nano Labs i.e., Nano Labs and CVD Equipment go up and down completely randomly.
Pair Corralation between Nano Labs and CVD Equipment
Allowing for the 90-day total investment horizon Nano Labs is expected to generate 5.47 times more return on investment than CVD Equipment. However, Nano Labs is 5.47 times more volatile than CVD Equipment. It trades about 0.11 of its potential returns per unit of risk. CVD Equipment is currently generating about 0.08 per unit of risk. If you would invest 580.00 in Nano Labs on September 26, 2024 and sell it today you would earn a total of 319.00 from holding Nano Labs or generate 55.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Labs vs. CVD Equipment
Performance |
| Timeline |
| Nano Labs |
| CVD Equipment |
Nano Labs and CVD Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Labs and CVD Equipment
The main advantage of trading using opposite Nano Labs and CVD Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Labs position performs unexpectedly, CVD Equipment 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 CVD Equipment will offset losses from the drop in CVD Equipment's long position.| Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. ChipMOS Technologies | Nano Labs vs. Wisekey International Holding |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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