Correlation Between NCino and Lytus Technologies
Can any of the company-specific risk be diversified away by investing in both NCino and Lytus Technologies 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 NCino and Lytus Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nCino Inc and Lytus Technologies Holdings, you can compare the effects of market volatilities on NCino and Lytus Technologies 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 NCino with a short position of Lytus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCino and Lytus Technologies.
Diversification Opportunities for NCino and Lytus Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NCino and Lytus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and Lytus Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lytus Technologies and NCino 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 nCino Inc are associated (or correlated) with Lytus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lytus Technologies has no effect on the direction of NCino i.e., NCino and Lytus Technologies go up and down completely randomly.
Pair Corralation between NCino and Lytus Technologies
Given the investment horizon of 90 days nCino Inc is expected to generate 0.13 times more return on investment than Lytus Technologies. However, nCino Inc is 7.98 times less risky than Lytus Technologies. It trades about 0.07 of its potential returns per unit of risk. Lytus Technologies Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,939 in nCino Inc on September 3, 2024 and sell it today you would earn a total of 1,216 from holding nCino Inc or generate 41.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
nCino Inc vs. Lytus Technologies Holdings
Performance |
| Timeline |
| nCino Inc |
| Lytus Technologies |
NCino and Lytus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCino and Lytus Technologies
The main advantage of trading using opposite NCino and Lytus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCino position performs unexpectedly, Lytus Technologies 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 Lytus Technologies will offset losses from the drop in Lytus Technologies' long position.| NCino vs. Clearwater Analytics Holdings | NCino vs. Meridianlink | NCino vs. Envestnet | NCino vs. Bigcommerce Holdings |
| Lytus Technologies vs. Salesforce | Lytus Technologies vs. Workday | Lytus Technologies vs. Unity Software |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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