Correlation Between Daxor and Nexgel
Can any of the company-specific risk be diversified away by investing in both Daxor and Nexgel 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 Daxor and Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daxor and Nexgel Inc, you can compare the effects of market volatilities on Daxor and Nexgel 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 Daxor with a short position of Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daxor and Nexgel.
Diversification Opportunities for Daxor and Nexgel
Significant diversification
The 3 months correlation between Daxor and Nexgel is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Daxor and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and Daxor 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 Daxor are associated (or correlated) with Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Daxor i.e., Daxor and Nexgel go up and down completely randomly.
Pair Corralation between Daxor and Nexgel
Considering the 90-day investment horizon Daxor is expected to generate 0.48 times more return on investment than Nexgel. However, Daxor is 2.06 times less risky than Nexgel. It trades about 0.04 of its potential returns per unit of risk. Nexgel Inc is currently generating about -0.14 per unit of risk. If you would invest 775.00 in Daxor on December 27, 2024 and sell it today you would earn a total of 31.00 from holding Daxor or generate 4.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Daxor vs. Nexgel Inc
Performance |
Timeline |
Daxor |
Nexgel Inc |
Daxor and Nexgel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Daxor and Nexgel
The main advantage of trading using opposite Daxor and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daxor position performs unexpectedly, Nexgel 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 will offset losses from the drop in Nexgel's long position.Daxor vs. InfuSystems Holdings | Daxor vs. Meihua International Medical | Daxor vs. Repro Med Systems | Daxor vs. LeMaitre Vascular |
Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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