Correlation Between Tivic Health and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Tivic Health 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 Tivic Health and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tivic Health Systems and Nexalin Technology, you can compare the effects of market volatilities on Tivic Health 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 Tivic Health with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tivic Health and Nexalin Technology.
Diversification Opportunities for Tivic Health and Nexalin Technology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tivic and Nexalin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Tivic Health 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 Tivic Health Systems 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 Tivic Health i.e., Tivic Health and Nexalin Technology go up and down completely randomly.
Pair Corralation between Tivic Health and Nexalin Technology
Given the investment horizon of 90 days Tivic Health Systems is expected to generate 1.95 times more return on investment than Nexalin Technology. However, Tivic Health is 1.95 times more volatile than Nexalin Technology. It trades about 0.03 of its potential returns per unit of risk. Nexalin Technology is currently generating about 0.05 per unit of risk. If you would invest 29.00 in Tivic Health Systems on November 2, 2024 and sell it today you would lose (5.00) from holding Tivic Health Systems or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tivic Health Systems vs. Nexalin Technology
Performance |
| Timeline |
| Tivic Health Systems |
| Nexalin Technology |
Tivic Health and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tivic Health and Nexalin Technology
The main advantage of trading using opposite Tivic Health and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tivic Health 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.| Tivic Health vs. Bluejay Diagnostics | Tivic Health vs. Heart Test Laboratories | Tivic Health vs. Nuwellis | Tivic Health vs. Bone Biologics Corp |
| Nexalin Technology vs. Ainos Inc | Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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