Correlation Between Dear Cashmere and Nogin

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

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

Diversification Opportunities for Dear Cashmere and Nogin

-0.44

Correlation Coefficient

Dear Cashmere  Nogin

Very good diversification

The 3 months correlation between Dear and Nogin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dear Cashmere Holding and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin Inc and Dear Cashmere 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 Dear Cashmere Holding 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 Dear Cashmere i.e., Dear Cashmere and Nogin go up and down completely randomly.

Pair Corralation between Dear Cashmere and Nogin

If you would invest  15.00  in Dear Cashmere Holding on September 13, 2024 and sell it today you would earn a total of  2.00  from holding Dear Cashmere Holding or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Dear Cashmere Holding  vs.  Nogin Inc

Dear Cashmere Holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dear Cashmere Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental indicators, Dear Cashmere reported solid returns over the last few months and may actually be approaching a breakup point.

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 fairly stable basic indicators, Nogin is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Dear Cashmere and Nogin

The main advantage of trading using opposite Dear Cashmere and Nogin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dear Cashmere 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 Dear Cashmere Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.