Correlation Between Navigator Global and 4Dmedical

Can any of the company-specific risk be diversified away by investing in both Navigator Global and 4Dmedical 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 Navigator Global and 4Dmedical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Navigator Global Investments and 4Dmedical, you can compare the effects of market volatilities on Navigator Global and 4Dmedical 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 Navigator Global with a short position of 4Dmedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigator Global and 4Dmedical.

Diversification Opportunities for Navigator Global and 4Dmedical

-0.68

Correlation Coefficient

Navigator Global  4Dmedical

Excellent diversification

The 3 months correlation between Navigator and 4Dmedical is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Navigator Global Investments and 4Dmedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Dmedical and Navigator Global 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 Navigator Global Investments are associated (or correlated) with 4Dmedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Dmedical has no effect on the direction of Navigator Global i.e., Navigator Global and 4Dmedical go up and down completely randomly.

Pair Corralation between Navigator Global and 4Dmedical

Assuming the 90 days trading horizon Navigator Global Investments is expected to generate 0.61 times more return on investment than 4Dmedical. However, Navigator Global Investments is 1.64 times less risky than 4Dmedical. It trades about 0.05 of its potential returns per unit of risk. 4Dmedical is currently generating about -0.06 per unit of risk. If you would invest  170.00  in Navigator Global Investments on December 25, 2024 and sell it today you would earn a total of  11.00  from holding Navigator Global Investments or generate 6.47% return on investment over 90 days.

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

Navigator Global Investments  vs.  4Dmedical

Navigator Global Inv

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Navigator Global Investments are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Navigator Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

4Dmedical

Risk-Adjusted Performance

Very Weak

Over the last 90 days 4Dmedical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Navigator Global and 4Dmedical

The main advantage of trading using opposite Navigator Global and 4Dmedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator Global position performs unexpectedly, 4Dmedical 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 4Dmedical will offset losses from the drop in 4Dmedical's long position.

The idea behind Navigator Global Investments and 4Dmedical 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.