Correlation Between NCino and Dave Warrants

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

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

Diversification Opportunities for NCino and Dave Warrants

-0.33

Correlation Coefficient

NCino  Dave Warrants

Very good diversification

The 3 months correlation between NCino and Dave is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and Dave Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Warrants and NCino 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 nCino Inc are associated (or correlated) with Dave Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Warrants has no effect on the direction of NCino i.e., NCino and Dave Warrants go up and down completely randomly.

Pair Corralation between NCino and Dave Warrants

Given the investment horizon of 90 days nCino Inc is expected to under-perform the Dave Warrants. But the stock apears to be less risky and, when comparing its historical volatility, nCino Inc is 4.94 times less risky than Dave Warrants. The stock trades about -0.25 of its potential returns per unit of risk. The Dave Warrants is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Dave Warrants on December 4, 2024 and sell it today you would earn a total of  9.00  from holding Dave Warrants or generate 64.29% return on investment over 90 days.

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

nCino Inc  vs.  Dave Warrants

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.

Dave Warrants

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Warrants are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Dave Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NCino and Dave Warrants

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

The idea behind nCino Inc and Dave Warrants 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.