Correlation Between Blackboxstocks and Nogin

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

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

Diversification Opportunities for Blackboxstocks and Nogin

0.44

Correlation Coefficient

Blackboxstocks  Nogin

Very weak diversification

The 3 months correlation between Blackboxstocks and Nogin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Blackboxstocks and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin Inc and Blackboxstocks 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 Blackboxstocks are associated (or correlated) with Nogin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nogin Inc has no effect on the direction of Blackboxstocks i.e., Blackboxstocks and Nogin go up and down completely randomly.

Pair Corralation between Blackboxstocks and Nogin

Given the investment horizon of 90 days Blackboxstocks is expected to generate 0.47 times more return on investment than Nogin. However, Blackboxstocks is 2.12 times less risky than Nogin. It trades about 0.02 of its potential returns per unit of risk. Nogin Inc is currently generating about -0.07 per unit of risk. If you would invest  260.00  in Blackboxstocks on September 26, 2024 and sell it today you would lose (81.00) from holding Blackboxstocks or give up 31.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	24.63%
Values	Daily Returns

Blackboxstocks  vs.  Nogin Inc

Blackboxstocks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackboxstocks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Nogin Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nogin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Nogin is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Blackboxstocks and Nogin

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

The idea behind Blackboxstocks and Nogin Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.