Correlation Between Nogin and Appreciate Holdings

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

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

Diversification Opportunities for Nogin and Appreciate Holdings

0.47

Correlation Coefficient

Nogin  Appreciate Holdings

Very weak diversification

The 3 months correlation between Nogin and Appreciate is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and Appreciate Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appreciate Holdings 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 Appreciate Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appreciate Holdings has no effect on the direction of Nogin i.e., Nogin and Appreciate Holdings go up and down completely randomly.

Pair Corralation between Nogin and Appreciate Holdings

If you would invest  29.00  in Appreciate Holdings on September 1, 2024 and sell it today you would earn a total of  0.00  from holding Appreciate Holdings or generate 0.0% return on investment over 90 days.

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

Nogin Inc  vs.  Appreciate Holdings

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.

Appreciate Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Appreciate Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Appreciate Holdings is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Nogin and Appreciate Holdings

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

The idea behind Nogin Inc and Appreciate Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.