Correlation Between Nexalin Technology and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Nexalin Technology and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexalin Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Nexalin Technology and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and Dow Jones.
Diversification Opportunities for Nexalin Technology and Dow Jones
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexalin and Dow is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Dow Jones go up and down completely randomly.
Pair Corralation between Nexalin Technology and Dow Jones
Assuming the 90 days horizon Nexalin Technology is expected to generate 23.15 times more return on investment than Dow Jones. However, Nexalin Technology is 23.15 times more volatile than Dow Jones Industrial. It trades about 0.29 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.29 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexalin Technology vs. Dow Jones Industrial
Performance |
| Timeline |
Nexalin Technology and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nexalin Technology
Pair trading matchups for Nexalin Technology
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nexalin Technology and Dow Jones
The main advantage of trading using opposite Nexalin Technology and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexalin Technology position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Nexalin Technology vs. NexGel Warrant | Nexalin Technology vs. NLS Pharmaceutics AG | Nexalin Technology vs. Inspira Technologies Oxy |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |