Correlation Between Nutex Health and Beyond Air
Can any of the company-specific risk be diversified away by investing in both Nutex Health and Beyond Air 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 Nutex Health and Beyond Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutex Health and Beyond Air, you can compare the effects of market volatilities on Nutex Health and Beyond Air 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 Nutex Health with a short position of Beyond Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutex Health and Beyond Air.
Diversification Opportunities for Nutex Health and Beyond Air
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nutex and Beyond is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nutex Health and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air and Nutex Health 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 Nutex Health are associated (or correlated) with Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of Nutex Health i.e., Nutex Health and Beyond Air go up and down completely randomly.
Pair Corralation between Nutex Health and Beyond Air
Given the investment horizon of 90 days Nutex Health is expected to generate 1.09 times more return on investment than Beyond Air. However, Nutex Health is 1.09 times more volatile than Beyond Air. It trades about 0.3 of its potential returns per unit of risk. Beyond Air is currently generating about -0.01 per unit of risk. If you would invest 2,229 in Nutex Health on September 1, 2024 and sell it today you would earn a total of 1,491 from holding Nutex Health or generate 66.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nutex Health vs. Beyond Air
Performance |
| Timeline |
| Nutex Health |
| Beyond Air |
Nutex Health and Beyond Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutex Health and Beyond Air
The main advantage of trading using opposite Nutex Health and Beyond Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutex Health position performs unexpectedly, Beyond Air 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 Beyond Air will offset losses from the drop in Beyond Air's long position.| Nutex Health vs. Profound Medical Corp | Nutex Health vs. Si Bone | Nutex Health vs. Nevro Corp | Nutex Health vs. Paragon 28 |
| Beyond Air vs. Profound Medical Corp | Beyond Air vs. Si Bone | Beyond Air vs. Nevro Corp | Beyond Air vs. Paragon 28 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
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| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
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