Correlation Between Cingulate Warrants and NexGel Warrant

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

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

Diversification Opportunities for Cingulate Warrants and NexGel Warrant

-0.49

Correlation Coefficient

Cingulate Warrants  NexGel Warrant

Very good diversification

The 3 months correlation between Cingulate and NexGel is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and NexGel Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexGel Warrant and Cingulate Warrants 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 Cingulate Warrants 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 Cingulate Warrants i.e., Cingulate Warrants and NexGel Warrant go up and down completely randomly.

Pair Corralation between Cingulate Warrants and NexGel Warrant

Assuming the 90 days horizon Cingulate Warrants is expected to generate 2.09 times less return on investment than NexGel Warrant. In addition to that, Cingulate Warrants is 1.55 times more volatile than NexGel Warrant. It trades about 0.07 of its total potential returns per unit of risk. NexGel Warrant is currently generating about 0.23 per unit of volatility. If you would invest  51.00  in NexGel Warrant on September 22, 2024 and sell it today you would earn a total of  29.00  from holding NexGel Warrant or generate 56.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cingulate Warrants  vs.  NexGel Warrant

Cingulate Warrants

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cingulate Warrants are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Cingulate Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

NexGel Warrant

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NexGel Warrant are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, NexGel Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cingulate Warrants and NexGel Warrant

The main advantage of trading using opposite Cingulate Warrants and NexGel Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants 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 Cingulate Warrants 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.