Correlation Between Trust Stamp and NCino

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

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

Diversification Opportunities for Trust Stamp and NCino

0.53

Correlation Coefficient

Trust Stamp  NCino

Very weak diversification

The 3 months correlation between Trust and NCino is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc and Trust Stamp 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 Trust Stamp are associated (or correlated) with NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of Trust Stamp i.e., Trust Stamp and NCino go up and down completely randomly.

Pair Corralation between Trust Stamp and NCino

Given the investment horizon of 90 days Trust Stamp is expected to under-perform the NCino. In addition to that, Trust Stamp is 6.22 times more volatile than nCino Inc. It trades about -0.19 of its total potential returns per unit of risk. nCino Inc is currently generating about -0.12 per unit of volatility. If you would invest  3,443  in nCino Inc on December 27, 2024 and sell it today you would lose (470.00) from holding nCino Inc or give up 13.65% of portfolio value over 90 days.

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

Trust Stamp  vs.  nCino Inc

Trust Stamp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust Stamp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

nCino Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days nCino Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic 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 Trust Stamp and NCino

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

The idea behind Trust Stamp and nCino 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.