Correlation Between Cepton and Nanalysis Scientific

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

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

Diversification Opportunities for Cepton and Nanalysis Scientific

0.0

Correlation Coefficient

Cepton  Nanalysis Scientific

Pay attention - limited upside

The 3 months correlation between Cepton and Nanalysis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and Nanalysis Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanalysis Scientific Corp and Cepton 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 Cepton Inc are associated (or correlated) with Nanalysis Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanalysis Scientific Corp has no effect on the direction of Cepton i.e., Cepton and Nanalysis Scientific go up and down completely randomly.

Pair Corralation between Cepton and Nanalysis Scientific

If you would invest (100.00) in Cepton Inc on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Cepton Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cepton Inc  vs.  Nanalysis Scientific Corp

Cepton Inc

Risk-Adjusted Performance

Very Weak

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

Nanalysis Scientific Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nanalysis Scientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Nanalysis Scientific is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cepton and Nanalysis Scientific

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

The idea behind Cepton Inc and Nanalysis Scientific Corp 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.