Correlation Between Nextmart and INEO Tech
Can any of the company-specific risk be diversified away by investing in both Nextmart and INEO Tech 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 Nextmart and INEO Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextmart and INEO Tech Corp, you can compare the effects of market volatilities on Nextmart and INEO Tech 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 Nextmart with a short position of INEO Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextmart and INEO Tech.
Diversification Opportunities for Nextmart and INEO Tech
Modest diversification
The 3 months correlation between Nextmart and INEO is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nextmart and INEO Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INEO Tech Corp and Nextmart 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 Nextmart are associated (or correlated) with INEO Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INEO Tech Corp has no effect on the direction of Nextmart i.e., Nextmart and INEO Tech go up and down completely randomly.
Pair Corralation between Nextmart and INEO Tech
Given the investment horizon of 90 days Nextmart is expected to generate 3.49 times more return on investment than INEO Tech. However, Nextmart is 3.49 times more volatile than INEO Tech Corp. It trades about 0.12 of its potential returns per unit of risk. INEO Tech Corp is currently generating about -0.25 per unit of risk. If you would invest 0.04 in Nextmart on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Nextmart or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextmart vs. INEO Tech Corp
Performance |
| Timeline |
| Nextmart |
| INEO Tech Corp |
Nextmart and INEO Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextmart and INEO Tech
The main advantage of trading using opposite Nextmart and INEO Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextmart position performs unexpectedly, INEO Tech 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 INEO Tech will offset losses from the drop in INEO Tech's long position.| Nextmart vs. Genesis Electronics Group | Nextmart vs. Industrial Nanotech | Nextmart vs. Intl Star | Nextmart vs. HeadsUp Entertainment International |
| INEO Tech vs. Beyond Commerce | INEO Tech vs. Baosheng Media Group | INEO Tech vs. MGO Global Common | INEO Tech vs. CMG Holdings Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |