Correlation Between Nexalin Technology and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and Icecure 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 Icecure 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 Icecure Medical, you can compare the effects of market volatilities on Nexalin Technology and Icecure 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 Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and Icecure Medical.
Diversification Opportunities for Nexalin Technology and Icecure Medical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nexalin and Icecure is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical 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 Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Icecure Medical go up and down completely randomly.
Pair Corralation between Nexalin Technology and Icecure Medical
Considering the 90-day investment horizon Nexalin Technology is expected to generate 3.5 times more return on investment than Icecure Medical. However, Nexalin Technology is 3.5 times more volatile than Icecure Medical. It trades about 0.12 of its potential returns per unit of risk. Icecure Medical 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexalin Technology vs. Icecure Medical
Performance |
| Timeline |
| Nexalin Technology |
| Icecure Medical |
Nexalin Technology and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and Icecure Medical
The main advantage of trading using opposite Nexalin Technology and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, Icecure 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
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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