Correlation Between Nexgel and Xylo Technologies
Can any of the company-specific risk be diversified away by investing in both Nexgel and Xylo Technologies 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 Xylo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgel Inc and Xylo Technologies, you can compare the effects of market volatilities on Nexgel and Xylo Technologies 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 Xylo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgel and Xylo Technologies.
Diversification Opportunities for Nexgel and Xylo Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexgel and Xylo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and Xylo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xylo Technologies 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 Xylo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xylo Technologies has no effect on the direction of Nexgel i.e., Nexgel and Xylo Technologies go up and down completely randomly.
Pair Corralation between Nexgel and Xylo Technologies
Given the investment horizon of 90 days Nexgel Inc is expected to generate 0.81 times more return on investment than Xylo Technologies. However, Nexgel Inc is 1.23 times less risky than Xylo Technologies. It trades about 0.15 of its potential returns per unit of risk. Xylo Technologies is currently generating about 0.04 per unit of risk. If you would invest 295.00 in Nexgel Inc on August 28, 2024 and sell it today you would earn a total of 42.00 from holding Nexgel Inc or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexgel Inc vs. Xylo Technologies
Performance |
| Timeline |
| Nexgel Inc |
| Xylo Technologies |
Nexgel and Xylo Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexgel and Xylo Technologies
The main advantage of trading using opposite Nexgel and Xylo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgel position performs unexpectedly, Xylo Technologies 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 Xylo Technologies will offset losses from the drop in Xylo Technologies' long position.| Nexgel vs. EUDA Health Holdings | Nexgel vs. Nutex Health | Nexgel vs. Healthcare Triangle | Nexgel vs. Mangoceuticals, Common Stock |
| Xylo Technologies vs. EUDA Health Holdings | Xylo Technologies vs. Nutex Health | Xylo Technologies vs. Healthcare Triangle | Xylo Technologies vs. Mangoceuticals, Common Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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