Correlation Between Nexalin Technology and Paragon 28
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and Paragon 28 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 Paragon 28 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and Paragon 28, you can compare the effects of market volatilities on Nexalin Technology and Paragon 28 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 Paragon 28. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and Paragon 28.
Diversification Opportunities for Nexalin Technology and Paragon 28
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nexalin and Paragon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Paragon 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon 28 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 Paragon 28. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon 28 has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Paragon 28 go up and down completely randomly.
Pair Corralation between Nexalin Technology and Paragon 28
Considering the 90-day investment horizon Nexalin Technology is expected to generate 3.02 times more return on investment than Paragon 28. However, Nexalin Technology is 3.02 times more volatile than Paragon 28. It trades about 0.12 of its potential returns per unit of risk. Paragon 28 is currently generating about 0.02 per unit of risk. If you would invest 39.00 in Nexalin Technology on August 26, 2024 and sell it today you would earn a total of 343.00 from holding Nexalin Technology or generate 879.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexalin Technology vs. Paragon 28
Performance |
| Timeline |
| Nexalin Technology |
| Paragon 28 |
Nexalin Technology and Paragon 28 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and Paragon 28
The main advantage of trading using opposite Nexalin Technology and Paragon 28 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, Paragon 28 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 Paragon 28 will offset losses from the drop in Paragon 28's long position.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
| Paragon 28 vs. Pulmonx Corp | Paragon 28 vs. Iradimed Co | Paragon 28 vs. Orthofix Medical | Paragon 28 vs. Neuropace |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |