Correlation Between Sientra and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Sientra and Nexalin Technology 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 Sientra and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sientra and Nexalin Technology, you can compare the effects of market volatilities on Sientra and Nexalin Technology 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 Sientra with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sientra and Nexalin Technology.
Diversification Opportunities for Sientra and Nexalin Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sientra and Nexalin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sientra and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Sientra 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 Sientra are associated (or correlated) with Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of Sientra i.e., Sientra and Nexalin Technology go up and down completely randomly.
Pair Corralation between Sientra and Nexalin Technology
If you would invest 220.00 in Nexalin Technology on August 27, 2024 and sell it today you would earn a total of 170.00 from holding Nexalin Technology or generate 77.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sientra vs. Nexalin Technology
Performance |
| Timeline |
| Sientra |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nexalin Technology |
Sientra and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sientra and Nexalin Technology
The main advantage of trading using opposite Sientra and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sientra position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.The idea behind Sientra and Nexalin Technology 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.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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