Correlation Between Nexalin Technology and ProShares
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and ProShares 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 Nexalin Technology and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and ProShares SP Kensho, you can compare the effects of market volatilities on Nexalin Technology and ProShares 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 Nexalin Technology with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and ProShares.
Diversification Opportunities for Nexalin Technology and ProShares
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexalin and ProShares is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and ProShares SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP Kensho and Nexalin Technology 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 Nexalin Technology are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP Kensho has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and ProShares go up and down completely randomly.
Pair Corralation between Nexalin Technology and ProShares
Considering the 90-day investment horizon Nexalin Technology is expected to generate 6.9 times more return on investment than ProShares. However, Nexalin Technology is 6.9 times more volatile than ProShares SP Kensho. It trades about 0.15 of its potential returns per unit of risk. ProShares SP Kensho is currently generating about -0.01 per unit of risk. If you would invest 72.00 in Nexalin Technology on September 1, 2024 and sell it today you would earn a total of 346.00 from holding Nexalin Technology or generate 480.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nexalin Technology vs. ProShares SP Kensho
Performance |
| Timeline |
| Nexalin Technology |
| ProShares SP Kensho |
Nexalin Technology and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and ProShares
The main advantage of trading using opposite Nexalin Technology and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
| ProShares vs. ProShares SP Kensho | ProShares vs. ProShares Big Data | ProShares vs. Fidelity Covington Trust | ProShares vs. ProShares Smart Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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