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

-0.02

Correlation Coefficient

Daxor  Nexgel

Good diversification

The 3 months correlation between Daxor and Nexgel is -0.02. 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 0.63 times more return on investment than Nexgel. However, Daxor is 1.59 times less risky than Nexgel. It trades about -0.03 of its potential returns per unit of risk. Nexgel Inc is currently generating about -0.27 per unit of risk. If you would invest  769.00  in Daxor on December 2, 2024 and sell it today you would lose (13.00) from holding Daxor or give up 1.69% of portfolio value over 90 days.

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

Daxor  vs.  Nexgel Inc

Daxor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Nexgel Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nexgel Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Nexgel is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

The idea behind Daxor and Nexgel 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.