Correlation Between Nogin and AB International
Can any of the company-specific risk be diversified away by investing in both Nogin and AB International 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 Nogin and AB International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nogin Inc and AB International Group, you can compare the effects of market volatilities on Nogin and AB International 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 Nogin with a short position of AB International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nogin and AB International.
Diversification Opportunities for Nogin and AB International
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nogin and ABQQ is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and AB International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB International and Nogin 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 Nogin Inc are associated (or correlated) with AB International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB International has no effect on the direction of Nogin i.e., Nogin and AB International go up and down completely randomly.
Pair Corralation between Nogin and AB International
Assuming the 90 days horizon Nogin is expected to generate 27.19 times less return on investment than AB International. But when comparing it to its historical volatility, Nogin Inc is 1.94 times less risky than AB International. It trades about 0.01 of its potential returns per unit of risk. AB International Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.02 in AB International Group on August 31, 2024 and sell it today you would earn a total of 0.06 from holding AB International Group or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.49% |
| Values | Daily Returns |
Nogin Inc vs. AB International Group
Performance |
| Timeline |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AB International |
Nogin and AB International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nogin and AB International
The main advantage of trading using opposite Nogin and AB International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nogin position performs unexpectedly, AB International 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 AB International will offset losses from the drop in AB International's long position.The idea behind Nogin Inc and AB International Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AB International vs. Peer To Peer | AB International vs. AppYea Inc | AB International vs. Image Protect | AB International vs. Bowmo Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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