Correlation Between Nano Nuclear and Xometry
Can any of the company-specific risk be diversified away by investing in both Nano Nuclear and Xometry 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 Nano Nuclear and Xometry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Nuclear Energy and Xometry, you can compare the effects of market volatilities on Nano Nuclear and Xometry 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 Nano Nuclear with a short position of Xometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Nuclear and Xometry.
Diversification Opportunities for Nano Nuclear and Xometry
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nano and Xometry is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nano Nuclear Energy and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry and Nano Nuclear 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 Nano Nuclear Energy are associated (or correlated) with Xometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xometry has no effect on the direction of Nano Nuclear i.e., Nano Nuclear and Xometry go up and down completely randomly.
Pair Corralation between Nano Nuclear and Xometry
Considering the 90-day investment horizon Nano Nuclear is expected to generate 1.33 times less return on investment than Xometry. In addition to that, Nano Nuclear is 1.61 times more volatile than Xometry. It trades about 0.15 of its total potential returns per unit of risk. Xometry is currently generating about 0.31 per unit of volatility. If you would invest 2,046 in Xometry on August 30, 2024 and sell it today you would earn a total of 1,054 from holding Xometry or generate 51.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nano Nuclear Energy vs. Xometry
Performance |
| Timeline |
| Nano Nuclear Energy |
| Xometry |
Nano Nuclear and Xometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Nuclear and Xometry
The main advantage of trading using opposite Nano Nuclear and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Nuclear position performs unexpectedly, Xometry 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 Xometry will offset losses from the drop in Xometry's long position.| Nano Nuclear vs. TFI International | Nano Nuclear vs. Scandinavian Tobacco Group | Nano Nuclear vs. PepsiCo | Nano Nuclear vs. Turning Point Brands |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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