Correlation Between Nogin and Research Solutions
Can any of the company-specific risk be diversified away by investing in both Nogin and Research Solutions 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 Research Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nogin Inc and Research Solutions, you can compare the effects of market volatilities on Nogin and Research Solutions 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 Research Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nogin and Research Solutions.
Diversification Opportunities for Nogin and Research Solutions
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nogin and Research is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Research Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Research Solutions 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 Research Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Research Solutions has no effect on the direction of Nogin i.e., Nogin and Research Solutions go up and down completely randomly.
Pair Corralation between Nogin and Research Solutions
If you would invest 265.00 in Research Solutions on August 25, 2024 and sell it today you would earn a total of 60.00 from holding Research Solutions or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nogin Inc vs. Research Solutions
Performance |
| Timeline |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Research Solutions |
Nogin and Research Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nogin and Research Solutions
The main advantage of trading using opposite Nogin and Research Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nogin position performs unexpectedly, Research Solutions 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 Research Solutions will offset losses from the drop in Research Solutions' long position.The idea behind Nogin Inc and Research Solutions 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.| Research Solutions vs. Rayont Inc | Research Solutions vs. Shotspotter | Research Solutions vs. Issuer Direct Corp | Research Solutions vs. eGain |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |