Correlation Between Nexgel and MaxCyte
Can any of the company-specific risk be diversified away by investing in both Nexgel and MaxCyte 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 MaxCyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgel Inc and MaxCyte, you can compare the effects of market volatilities on Nexgel and MaxCyte 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 MaxCyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgel and MaxCyte.
Diversification Opportunities for Nexgel and MaxCyte
Excellent diversification
The 3 months correlation between Nexgel and MaxCyte is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte 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 MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of Nexgel i.e., Nexgel and MaxCyte go up and down completely randomly.
Pair Corralation between Nexgel and MaxCyte
Given the investment horizon of 90 days Nexgel Inc is expected to generate 1.17 times more return on investment than MaxCyte. However, Nexgel is 1.17 times more volatile than MaxCyte. It trades about 0.16 of its potential returns per unit of risk. MaxCyte is currently generating about 0.0 per unit of risk. If you would invest 288.00 in Nexgel Inc on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Nexgel Inc or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexgel Inc vs. MaxCyte
Performance |
| Timeline |
| Nexgel Inc |
| MaxCyte |
Nexgel and MaxCyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexgel and MaxCyte
The main advantage of trading using opposite Nexgel and MaxCyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgel position performs unexpectedly, MaxCyte 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 MaxCyte will offset losses from the drop in MaxCyte's long position.| Nexgel vs. ReShape Lifesciences | Nexgel vs. Bone Biologics Corp | Nexgel vs. Tivic Health Systems | Nexgel vs. Nuwellis |
| MaxCyte vs. ReShape Lifesciences | MaxCyte vs. Bone Biologics Corp | MaxCyte vs. Tivic Health Systems | MaxCyte vs. Nuwellis |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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