Correlation Between NGGLN and Valens
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By analyzing existing cross correlation between NGGLN 5783 16 SEP 52 and Valens, you can compare the effects of market volatilities on NGGLN and Valens 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 NGGLN with a short position of Valens. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGGLN and Valens.
Diversification Opportunities for NGGLN and Valens
Very good diversification
The 3 months correlation between NGGLN and Valens is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding NGGLN 5783 16 SEP 52 and Valens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valens and NGGLN 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 NGGLN 5783 16 SEP 52 are associated (or correlated) with Valens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valens has no effect on the direction of NGGLN i.e., NGGLN and Valens go up and down completely randomly.
Pair Corralation between NGGLN and Valens
Assuming the 90 days trading horizon NGGLN 5783 16 SEP 52 is expected to generate 0.46 times more return on investment than Valens. However, NGGLN 5783 16 SEP 52 is 2.18 times less risky than Valens. It trades about 0.01 of its potential returns per unit of risk. Valens is currently generating about 0.0 per unit of risk. If you would invest 9,928 in NGGLN 5783 16 SEP 52 on September 2, 2024 and sell it today you would earn a total of 135.00 from holding NGGLN 5783 16 SEP 52 or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.08% |
| Values | Daily Returns |
NGGLN 5783 16 SEP 52 vs. Valens
Performance |
| Timeline |
| NGGLN 5783 16 |
| Valens |
NGGLN and Valens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGGLN and Valens
The main advantage of trading using opposite NGGLN and Valens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGGLN position performs unexpectedly, Valens 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 Valens will offset losses from the drop in Valens' long position.The idea behind NGGLN 5783 16 SEP 52 and Valens 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.| Valens vs. Wolfspeed | Valens vs. GSI Technology | Valens vs. Lattice Semiconductor | Valens vs. ON Semiconductor |
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.
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