Correlation Between NamSys and TrustBIX

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

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

Diversification Opportunities for NamSys and TrustBIX

0.84

Correlation Coefficient

NamSys  TrustBIX

Very poor diversification

The 3 months correlation between NamSys and TrustBIX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NamSys Inc and TrustBIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrustBIX and NamSys 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 NamSys Inc are associated (or correlated) with TrustBIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrustBIX has no effect on the direction of NamSys i.e., NamSys and TrustBIX go up and down completely randomly.

Pair Corralation between NamSys and TrustBIX

If you would invest  69.00  in NamSys Inc on December 4, 2024 and sell it today you would earn a total of  12.00  from holding NamSys Inc or generate 17.39% return on investment over 90 days.

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

NamSys Inc  vs.  TrustBIX

NamSys Inc

Risk-Adjusted Performance

Weak

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

TrustBIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days TrustBIX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with NamSys and TrustBIX

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

The idea behind NamSys Inc and TrustBIX 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.