Correlation Between Nano Labs and Peraso

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

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

Diversification Opportunities for Nano Labs and Peraso

-0.17

Correlation Coefficient

Nano Labs  Peraso

Good diversification

The 3 months correlation between Nano and Peraso is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and Peraso Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peraso Inc and Nano Labs 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 Nano Labs are associated (or correlated) with Peraso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peraso Inc has no effect on the direction of Nano Labs i.e., Nano Labs and Peraso go up and down completely randomly.

Pair Corralation between Nano Labs and Peraso

Allowing for the 90-day total investment horizon Nano Labs is expected to generate 3.87 times more return on investment than Peraso. However, Nano Labs is 3.87 times more volatile than Peraso Inc. It trades about 0.19 of its potential returns per unit of risk. Peraso Inc is currently generating about 0.27 per unit of risk. If you would invest  499.00  in Nano Labs on September 20, 2024 and sell it today you would earn a total of  351.00  from holding Nano Labs or generate 70.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Nano Labs  vs.  Peraso Inc

Nano Labs

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Labs are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Nano Labs sustained solid returns over the last few months and may actually be approaching a breakup point.

Peraso Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Peraso Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Nano Labs and Peraso

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

The idea behind Nano Labs and Peraso 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.