Correlation Between Netcapital and Nayax
Can any of the company-specific risk be diversified away by investing in both Netcapital and Nayax 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 Nayax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netcapital and Nayax, you can compare the effects of market volatilities on Netcapital and Nayax 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 Nayax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcapital and Nayax.
Diversification Opportunities for Netcapital and Nayax
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netcapital and Nayax is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and Nayax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nayax 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 Nayax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nayax has no effect on the direction of Netcapital i.e., Netcapital and Nayax go up and down completely randomly.
Pair Corralation between Netcapital and Nayax
Given the investment horizon of 90 days Netcapital is expected to under-perform the Nayax. In addition to that, Netcapital is 2.54 times more volatile than Nayax. It trades about -0.04 of its total potential returns per unit of risk. Nayax is currently generating about 0.04 per unit of volatility. If you would invest 1,887 in Nayax on August 25, 2024 and sell it today you would earn a total of 982.00 from holding Nayax or generate 52.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.17% |
| Values | Daily Returns |
Netcapital vs. Nayax
Performance |
| Timeline |
| Netcapital |
| Nayax |
Netcapital and Nayax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcapital and Nayax
The main advantage of trading using opposite Netcapital and Nayax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcapital position performs unexpectedly, Nayax 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 Nayax will offset losses from the drop in Nayax's long position.| Netcapital vs. PowerUp Acquisition Corp | Netcapital vs. Aurora Innovation | Netcapital vs. HUMANA INC | Netcapital vs. Aquagold International |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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