Correlation Between Intevac and Nuburu

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

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

Diversification Opportunities for Intevac and Nuburu

0.5

Correlation Coefficient

Intevac  Nuburu

Very weak diversification

The 3 months correlation between Intevac and Nuburu is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc and Intevac 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 Intevac are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Intevac i.e., Intevac and Nuburu go up and down completely randomly.

Pair Corralation between Intevac and Nuburu

Given the investment horizon of 90 days Intevac is expected to generate 0.21 times more return on investment than Nuburu. However, Intevac is 4.7 times less risky than Nuburu. It trades about -0.03 of its potential returns per unit of risk. Nuburu Inc is currently generating about -0.03 per unit of risk. If you would invest  679.00  in Intevac on October 11, 2024 and sell it today you would lose (322.00) from holding Intevac or give up 47.42% of portfolio value over 90 days.

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

Intevac  vs.  Nuburu Inc

Intevac

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intevac are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intevac may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Nuburu Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nuburu Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Nuburu unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intevac and Nuburu

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

The idea behind Intevac and Nuburu 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.