Correlation Between NuGene International and Elcom International
Can any of the company-specific risk be diversified away by investing in both NuGene International and Elcom 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 NuGene International and Elcom International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuGene International and Elcom International, you can compare the effects of market volatilities on NuGene International and Elcom 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 NuGene International with a short position of Elcom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuGene International and Elcom International.
Diversification Opportunities for NuGene International and Elcom International
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NuGene and Elcom is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NuGene International and Elcom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom International and NuGene International 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 NuGene International are associated (or correlated) with Elcom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom International has no effect on the direction of NuGene International i.e., NuGene International and Elcom International go up and down completely randomly.
Pair Corralation between NuGene International and Elcom International
Given the investment horizon of 90 days NuGene International is expected to generate 9.12 times more return on investment than Elcom International. However, NuGene International is 9.12 times more volatile than Elcom International. It trades about 0.01 of its potential returns per unit of risk. Elcom International is currently generating about -0.15 per unit of risk. If you would invest 7.00 in NuGene International on August 27, 2024 and sell it today you would lose (6.50) from holding NuGene International or give up 92.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 9.27% |
| Values | Daily Returns |
NuGene International vs. Elcom International
Performance |
| Timeline |
| NuGene International |
| Elcom International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NuGene International and Elcom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuGene International and Elcom International
The main advantage of trading using opposite NuGene International and Elcom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuGene International position performs unexpectedly, Elcom 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 Elcom International will offset losses from the drop in Elcom International's long position.| NuGene International vs. Absolute Health and | NuGene International vs. China Health Management | NuGene International vs. Embrace Change Acquisition | NuGene International vs. TransAKT |
| Elcom International vs. NuGene International | Elcom International vs. Zoom Video Communications | Elcom International vs. Bowmo Inc | Elcom International vs. Epazz 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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