Correlation Between Netcapital and Netcapital
Can any of the company-specific risk be diversified away by investing in both Netcapital and Netcapital 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 Netcapital and Netcapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netcapital and Netcapital, you can compare the effects of market volatilities on Netcapital and Netcapital 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 Netcapital with a short position of Netcapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcapital and Netcapital.
Diversification Opportunities for Netcapital and Netcapital
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Netcapital and Netcapital is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and Netcapital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netcapital and Netcapital 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 Netcapital are associated (or correlated) with Netcapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netcapital has no effect on the direction of Netcapital i.e., Netcapital and Netcapital go up and down completely randomly.
Pair Corralation between Netcapital and Netcapital
Given the investment horizon of 90 days Netcapital is expected to under-perform the Netcapital. But the stock apears to be less risky and, when comparing its historical volatility, Netcapital is 24.46 times less risky than Netcapital. The stock trades about -0.11 of its potential returns per unit of risk. The Netcapital is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2.80 in Netcapital on September 2, 2024 and sell it today you would lose (0.80) from holding Netcapital or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Netcapital vs. Netcapital
Performance |
| Timeline |
| Netcapital |
| Netcapital |
Netcapital and Netcapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcapital and Netcapital
The main advantage of trading using opposite Netcapital and Netcapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcapital position performs unexpectedly, Netcapital 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 Netcapital will offset losses from the drop in Netcapital's long position.| Netcapital vs. Applied Blockchain | Netcapital vs. Zhong Yang Financial | Netcapital vs. Magic Empire Global | Netcapital vs. Lazard |
| Netcapital vs. Netcapital | Netcapital vs. BuzzFeed | Netcapital vs. Guardforce AI Co | Netcapital vs. SHF Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |