Correlation Between Nexalin Technology and Delcath Systems
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and Delcath Systems 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 Delcath Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and Delcath Systems, you can compare the effects of market volatilities on Nexalin Technology and Delcath Systems 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 Delcath Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and Delcath Systems.
Diversification Opportunities for Nexalin Technology and Delcath Systems
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nexalin and Delcath is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems 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 Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Delcath Systems go up and down completely randomly.
Pair Corralation between Nexalin Technology and Delcath Systems
Considering the 90-day investment horizon Nexalin Technology is expected to generate 3.35 times more return on investment than Delcath Systems. However, Nexalin Technology is 3.35 times more volatile than Delcath Systems. It trades about 0.28 of its potential returns per unit of risk. Delcath Systems is currently generating about -0.12 per unit of risk. If you would invest 229.00 in Nexalin Technology on August 26, 2024 and sell it today you would earn a total of 153.00 from holding Nexalin Technology or generate 66.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexalin Technology vs. Delcath Systems
Performance |
| Timeline |
| Nexalin Technology |
| Delcath Systems |
Nexalin Technology and Delcath Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and Delcath Systems
The main advantage of trading using opposite Nexalin Technology and Delcath Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, Delcath Systems 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 Delcath Systems will offset losses from the drop in Delcath Systems' long position.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |