Correlation Between EPlus and Nukkleus
Can any of the company-specific risk be diversified away by investing in both EPlus and Nukkleus 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 EPlus and Nukkleus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlus inc and Nukkleus, you can compare the effects of market volatilities on EPlus and Nukkleus 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 EPlus with a short position of Nukkleus. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlus and Nukkleus.
Diversification Opportunities for EPlus and Nukkleus
Good diversification
The 3 months correlation between EPlus and Nukkleus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus and EPlus 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 ePlus inc are associated (or correlated) with Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of EPlus i.e., EPlus and Nukkleus go up and down completely randomly.
Pair Corralation between EPlus and Nukkleus
Given the investment horizon of 90 days EPlus is expected to generate 2.15 times less return on investment than Nukkleus. But when comparing it to its historical volatility, ePlus inc is 8.0 times less risky than Nukkleus. It trades about 0.06 of its potential returns per unit of risk. Nukkleus is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Nukkleus on September 13, 2024 and sell it today you would lose (17.99) from holding Nukkleus or give up 85.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.7% |
| Values | Daily Returns |
ePlus inc vs. Nukkleus
Performance |
| Timeline |
| ePlus inc |
| Nukkleus |
EPlus and Nukkleus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlus and Nukkleus
The main advantage of trading using opposite EPlus and Nukkleus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlus position performs unexpectedly, Nukkleus 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 Nukkleus will offset losses from the drop in Nukkleus' long position.The idea behind ePlus inc and Nukkleus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nukkleus vs. PepsiCo | Nukkleus vs. Amgen Inc | Nukkleus vs. National Beverage Corp | Nukkleus vs. Fomento Economico Mexicano |
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.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |