Correlation Between Nexalin Technology and Escalon Medical
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and Escalon Medical 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 Escalon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and Escalon Medical Corp, you can compare the effects of market volatilities on Nexalin Technology and Escalon Medical 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 Escalon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and Escalon Medical.
Diversification Opportunities for Nexalin Technology and Escalon Medical
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nexalin and Escalon is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Escalon Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalon Medical Corp 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 Escalon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalon Medical Corp has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Escalon Medical go up and down completely randomly.
Pair Corralation between Nexalin Technology and Escalon Medical
If you would invest 220.00 in Nexalin Technology on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Nexalin Technology or generate 77.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nexalin Technology vs. Escalon Medical Corp
Performance |
| Timeline |
| Nexalin Technology |
| Escalon Medical Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexalin Technology and Escalon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and Escalon Medical
The main advantage of trading using opposite Nexalin Technology and Escalon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, Escalon Medical 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 Escalon Medical will offset losses from the drop in Escalon Medical's long position.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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