Correlation Between NanoVibronix and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both NanoVibronix 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 NanoVibronix and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoVibronix and Nexalin Technology, you can compare the effects of market volatilities on NanoVibronix 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 NanoVibronix with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoVibronix and Nexalin Technology.
Diversification Opportunities for NanoVibronix and Nexalin Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NanoVibronix and Nexalin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding NanoVibronix and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and NanoVibronix 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 NanoVibronix 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 NanoVibronix i.e., NanoVibronix and Nexalin Technology go up and down completely randomly.
Pair Corralation between NanoVibronix and Nexalin Technology
Given the investment horizon of 90 days NanoVibronix is expected to generate 2.53 times more return on investment than Nexalin Technology. However, NanoVibronix is 2.53 times more volatile than Nexalin Technology. It trades about 0.02 of its potential returns per unit of risk. Nexalin Technology is currently generating about -0.05 per unit of risk. If you would invest 62.00 in NanoVibronix on November 3, 2024 and sell it today you would lose (7.00) from holding NanoVibronix or give up 11.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NanoVibronix vs. Nexalin Technology
Performance |
| Timeline |
| NanoVibronix |
| Nexalin Technology |
NanoVibronix and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NanoVibronix and Nexalin Technology
The main advantage of trading using opposite NanoVibronix and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoVibronix 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.| NanoVibronix vs. Bone Biologics Corp | NanoVibronix vs. Bluejay Diagnostics | NanoVibronix vs. Vivos Therapeutics | NanoVibronix vs. Tivic Health Systems |
| Nexalin Technology vs. Ainos Inc | Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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