Correlation Between Nexgel and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both Nexgel and GlucoTrack 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 Nexgel and GlucoTrack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgel Inc and GlucoTrack, you can compare the effects of market volatilities on Nexgel and GlucoTrack 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 Nexgel with a short position of GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgel and GlucoTrack.
Diversification Opportunities for Nexgel and GlucoTrack
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexgel and GlucoTrack is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack and Nexgel 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 Nexgel Inc are associated (or correlated) with GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Nexgel i.e., Nexgel and GlucoTrack go up and down completely randomly.
Pair Corralation between Nexgel and GlucoTrack
Given the investment horizon of 90 days Nexgel Inc is expected to generate 0.2 times more return on investment than GlucoTrack. However, Nexgel Inc is 5.09 times less risky than GlucoTrack. It trades about -0.03 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.24 per unit of risk. If you would invest 383.00 in Nexgel Inc on November 2, 2024 and sell it today you would lose (15.00) from holding Nexgel Inc or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexgel Inc vs. GlucoTrack
Performance |
| Timeline |
| Nexgel Inc |
| GlucoTrack |
Nexgel and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexgel and GlucoTrack
The main advantage of trading using opposite Nexgel and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgel position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
| GlucoTrack vs. Integer Holdings Corp | GlucoTrack vs. Glaukos Corp | GlucoTrack vs. CONMED | GlucoTrack vs. Pulmonx 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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