Correlation Between Nexalin Technology and CEA Industries
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and CEA Industries 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 CEA Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and CEA Industries Warrant, you can compare the effects of market volatilities on Nexalin Technology and CEA Industries 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 CEA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and CEA Industries.
Diversification Opportunities for Nexalin Technology and CEA Industries
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexalin and CEA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and CEA Industries Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEA Industries Warrant 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 CEA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEA Industries Warrant has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and CEA Industries go up and down completely randomly.
Pair Corralation between Nexalin Technology and CEA Industries
Assuming the 90 days horizon Nexalin Technology is expected to generate 0.76 times more return on investment than CEA Industries. However, Nexalin Technology is 1.32 times less risky than CEA Industries. It trades about 0.29 of its potential returns per unit of risk. CEA Industries Warrant is currently generating about 0.03 per unit of risk. If you would invest 17.00 in Nexalin Technology on August 31, 2024 and sell it today you would earn a total of 24.00 from holding Nexalin Technology or generate 141.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 18.18% |
| Values | Daily Returns |
Nexalin Technology vs. CEA Industries Warrant
Performance |
| Timeline |
| Nexalin Technology |
| CEA Industries Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Nexalin Technology and CEA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexalin Technology and CEA Industries
The main advantage of trading using opposite Nexalin Technology and CEA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, CEA Industries 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 CEA Industries will offset losses from the drop in CEA Industries' long position.| Nexalin Technology vs. NexGel Warrant | Nexalin Technology vs. NLS Pharmaceutics AG | Nexalin Technology vs. Inspira Technologies Oxy |
| CEA Industries vs. CEA Industries | CEA Industries vs. Thayer Ventures Acquisition | CEA Industries vs. Iveda Solutions Warrant | CEA Industries vs. HUMANA INC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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