Correlation Between Novanta and US Nuclear
Can any of the company-specific risk be diversified away by investing in both Novanta and US Nuclear 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 Novanta and US Nuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novanta and US Nuclear Corp, you can compare the effects of market volatilities on Novanta and US Nuclear 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 Novanta with a short position of US Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novanta and US Nuclear.
Diversification Opportunities for Novanta and US Nuclear
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Novanta and UCLE is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Novanta and US Nuclear Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Nuclear Corp and Novanta 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 Novanta are associated (or correlated) with US Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Nuclear Corp has no effect on the direction of Novanta i.e., Novanta and US Nuclear go up and down completely randomly.
Pair Corralation between Novanta and US Nuclear
Given the investment horizon of 90 days Novanta is expected to generate 310.01 times less return on investment than US Nuclear. But when comparing it to its historical volatility, Novanta is 46.67 times less risky than US Nuclear. It trades about 0.03 of its potential returns per unit of risk. US Nuclear Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8.30 in US Nuclear Corp on September 2, 2024 and sell it today you would earn a total of 3.70 from holding US Nuclear Corp or generate 44.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novanta vs. US Nuclear Corp
Performance |
| Timeline |
| Novanta |
| US Nuclear Corp |
Novanta and US Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novanta and US Nuclear
The main advantage of trading using opposite Novanta and US Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novanta position performs unexpectedly, US Nuclear 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 US Nuclear will offset losses from the drop in US Nuclear's long position.| Novanta vs. Mind Technology | Novanta vs. Cepton Inc | Novanta vs. SaverOne 2014 Ltd | Novanta vs. Fortive Corp |
| US Nuclear vs. Keyence | US Nuclear vs. Garmin | US Nuclear vs. Keysight Technologies | US Nuclear vs. Fortive Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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