Correlation Between Nanalysis Scientific and AERWINS Technologies

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

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

Diversification Opportunities for Nanalysis Scientific and AERWINS Technologies

0.43

Correlation Coefficient

Nanalysis Scientific  AERWINS Technologies

Very weak diversification

The 3 months correlation between Nanalysis and AERWINS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nanalysis Scientific Corp and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Nanalysis Scientific 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 Nanalysis Scientific Corp are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Nanalysis Scientific i.e., Nanalysis Scientific and AERWINS Technologies go up and down completely randomly.

Pair Corralation between Nanalysis Scientific and AERWINS Technologies

If you would invest  96.00  in AERWINS Technologies on September 5, 2024 and sell it today you would earn a total of  0.00  from holding AERWINS Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Nanalysis Scientific Corp  vs.  AERWINS Technologies

Nanalysis Scientific Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nanalysis Scientific Corp 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 forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AERWINS Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nanalysis Scientific and AERWINS Technologies

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

The idea behind Nanalysis Scientific Corp and AERWINS Technologies 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.