Correlation Between Nexgel and InfuSystems Holdings
Can any of the company-specific risk be diversified away by investing in both Nexgel and InfuSystems Holdings 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 InfuSystems Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgel Inc and InfuSystems Holdings, you can compare the effects of market volatilities on Nexgel and InfuSystems Holdings 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 InfuSystems Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgel and InfuSystems Holdings.
Diversification Opportunities for Nexgel and InfuSystems Holdings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexgel and InfuSystems is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings 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 InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of Nexgel i.e., Nexgel and InfuSystems Holdings go up and down completely randomly.
Pair Corralation between Nexgel and InfuSystems Holdings
Given the investment horizon of 90 days Nexgel is expected to generate 1.73 times less return on investment than InfuSystems Holdings. In addition to that, Nexgel is 1.05 times more volatile than InfuSystems Holdings. It trades about 0.07 of its total potential returns per unit of risk. InfuSystems Holdings is currently generating about 0.13 per unit of volatility. If you would invest 665.00 in InfuSystems Holdings on August 30, 2024 and sell it today you would earn a total of 221.00 from holding InfuSystems Holdings or generate 33.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexgel Inc vs. InfuSystems Holdings
Performance |
| Timeline |
| Nexgel Inc |
| InfuSystems Holdings |
Nexgel and InfuSystems Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexgel and InfuSystems Holdings
The main advantage of trading using opposite Nexgel and InfuSystems Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgel position performs unexpectedly, InfuSystems Holdings 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 InfuSystems Holdings will offset losses from the drop in InfuSystems Holdings' long position.| Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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