Correlation Between Aclarion and NexGel Warrant

Can any of the company-specific risk be diversified away by investing in both Aclarion and NexGel Warrant 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 Aclarion and NexGel Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aclarion and NexGel Warrant, you can compare the effects of market volatilities on Aclarion and NexGel Warrant 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 Aclarion with a short position of NexGel Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclarion and NexGel Warrant.

Diversification Opportunities for Aclarion and NexGel Warrant

-0.01

Correlation Coefficient

Aclarion  NexGel Warrant

Good diversification

The 3 months correlation between Aclarion and NexGel is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aclarion and NexGel Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexGel Warrant and Aclarion 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 Aclarion are associated (or correlated) with NexGel Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexGel Warrant has no effect on the direction of Aclarion i.e., Aclarion and NexGel Warrant go up and down completely randomly.

Pair Corralation between Aclarion and NexGel Warrant

Assuming the 90 days horizon Aclarion is expected to generate 13.98 times more return on investment than NexGel Warrant. However, Aclarion is 13.98 times more volatile than NexGel Warrant. It trades about 0.15 of its potential returns per unit of risk. NexGel Warrant is currently generating about 0.05 per unit of risk. If you would invest  3.19  in Aclarion on September 5, 2024 and sell it today you would earn a total of  0.71  from holding Aclarion or generate 22.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.43%
Values	Daily Returns

Aclarion  vs.  NexGel Warrant

Aclarion

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aclarion are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Aclarion showed solid returns over the last few months and may actually be approaching a breakup point.

NexGel Warrant

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NexGel Warrant are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, NexGel Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aclarion and NexGel Warrant

The main advantage of trading using opposite Aclarion and NexGel Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclarion position performs unexpectedly, NexGel Warrant 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 NexGel Warrant will offset losses from the drop in NexGel Warrant's long position.

The idea behind Aclarion and NexGel Warrant 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.

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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..