Correlation Between Nabors Industries and CG Oncology,
Can any of the company-specific risk be diversified away by investing in both Nabors Industries and CG Oncology, 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 Nabors Industries and CG Oncology, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and CG Oncology, Common, you can compare the effects of market volatilities on Nabors Industries and CG Oncology, 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 Nabors Industries with a short position of CG Oncology,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and CG Oncology,.
Diversification Opportunities for Nabors Industries and CG Oncology,
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nabors and CGON is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and CG Oncology, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Oncology, Common and Nabors Industries 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 Nabors Industries are associated (or correlated) with CG Oncology,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Oncology, Common has no effect on the direction of Nabors Industries i.e., Nabors Industries and CG Oncology, go up and down completely randomly.
Pair Corralation between Nabors Industries and CG Oncology,
Considering the 90-day investment horizon Nabors Industries is expected to generate 1.76 times less return on investment than CG Oncology,. But when comparing it to its historical volatility, Nabors Industries is 1.09 times less risky than CG Oncology,. It trades about 0.01 of its potential returns per unit of risk. CG Oncology, Common is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,717 in CG Oncology, Common on September 4, 2024 and sell it today you would lose (226.00) from holding CG Oncology, Common or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.85% |
| Values | Daily Returns |
Nabors Industries vs. CG Oncology, Common
Performance |
| Timeline |
| Nabors Industries |
| CG Oncology, Common |
Nabors Industries and CG Oncology, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and CG Oncology,
The main advantage of trading using opposite Nabors Industries and CG Oncology, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, CG Oncology, 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 CG Oncology, will offset losses from the drop in CG Oncology,'s long position.| Nabors Industries vs. Precision Drilling | Nabors Industries vs. Sable Offshore Corp | Nabors Industries vs. Patterson UTI Energy | Nabors Industries vs. Borr Drilling |
| CG Oncology, vs. Balchem | CG Oncology, vs. Nabors Industries | CG Oncology, vs. Seadrill Limited | CG Oncology, vs. Ecovyst |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |