Correlation Between Nogin and Two Hands
Can any of the company-specific risk be diversified away by investing in both Nogin and Two Hands 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 Two Hands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nogin Inc and Two Hands Corp, you can compare the effects of market volatilities on Nogin and Two Hands 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 Two Hands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nogin and Two Hands.
Diversification Opportunities for Nogin and Two Hands
Significant diversification
The 3 months correlation between Nogin and Two is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Two Hands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Two Hands Corp 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 Two Hands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Two Hands Corp has no effect on the direction of Nogin i.e., Nogin and Two Hands go up and down completely randomly.
Pair Corralation between Nogin and Two Hands
Assuming the 90 days horizon Nogin is expected to generate 249.44 times less return on investment than Two Hands. But when comparing it to its historical volatility, Nogin Inc is 13.69 times less risky than Two Hands. It trades about 0.01 of its potential returns per unit of risk. Two Hands Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Two Hands Corp on August 31, 2024 and sell it today you would lose (0.03) from holding Two Hands Corp or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.51% |
| Values | Daily Returns |
Nogin Inc vs. Two Hands Corp
Performance |
| Timeline |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Two Hands Corp |
Nogin and Two Hands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nogin and Two Hands
The main advantage of trading using opposite Nogin and Two Hands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nogin position performs unexpectedly, Two Hands 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 Two Hands will offset losses from the drop in Two Hands' long position.The idea behind Nogin Inc and Two Hands Corp 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.| Two Hands vs. Protek Capital | Two Hands vs. Bowmo Inc | Two Hands vs. AirIQ Inc | Two Hands vs. AB International Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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