Correlation Between Nogin and Blackboxstocks

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

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

Diversification Opportunities for Nogin and Blackboxstocks

0.44

Correlation Coefficient

Nogin  Blackboxstocks

Very weak diversification

The 3 months correlation between Nogin and Blackboxstocks is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Blackboxstocks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackboxstocks and Nogin 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 Nogin Inc are associated (or correlated) with Blackboxstocks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackboxstocks has no effect on the direction of Nogin i.e., Nogin and Blackboxstocks go up and down completely randomly.

Pair Corralation between Nogin and Blackboxstocks

Given the investment horizon of 90 days Nogin Inc is expected to under-perform the Blackboxstocks. In addition to that, Nogin is 2.12 times more volatile than Blackboxstocks. It trades about -0.07 of its total potential returns per unit of risk. Blackboxstocks is currently generating about 0.02 per unit of volatility. If you would invest  260.00  in Blackboxstocks on September 26, 2024 and sell it today you would lose (81.00) from holding Blackboxstocks or give up 31.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	24.63%
Values	Daily Returns

Nogin Inc  vs.  Blackboxstocks

Nogin Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nogin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Nogin is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackboxstocks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackboxstocks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Nogin and Blackboxstocks

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

The idea behind Nogin Inc and Blackboxstocks 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.