Correlation Between Gushen and NuGene International

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

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

Diversification Opportunities for Gushen and NuGene International

0.0

Correlation Coefficient

Gushen  NuGene International

Pay attention - limited upside

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

Pair Corralation between Gushen and NuGene International

If you would invest (100.00) in Gushen Inc on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Gushen 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

Gushen Inc  vs.  NuGene International

Gushen Inc

Risk-Adjusted Performance

Very Weak

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

NuGene International

Risk-Adjusted Performance

Weak

Over the last 90 days NuGene International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Gushen and NuGene International

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

The idea behind Gushen Inc and NuGene International 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.