Correlation Between NanoTech Gaming and Serina Therapeutics

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

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

Diversification Opportunities for NanoTech Gaming and Serina Therapeutics

0.0

Correlation Coefficient

NanoTech Gaming  Serina Therapeutics

Pay attention - limited upside

The 3 months correlation between NanoTech and Serina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NanoTech Gaming and Serina Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serina Therapeutics and NanoTech Gaming 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 NanoTech Gaming are associated (or correlated) with Serina Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serina Therapeutics has no effect on the direction of NanoTech Gaming i.e., NanoTech Gaming and Serina Therapeutics go up and down completely randomly.

Pair Corralation between NanoTech Gaming and Serina Therapeutics

If you would invest  526.00  in Serina Therapeutics on September 21, 2024 and sell it today you would earn a total of  27.00  from holding Serina Therapeutics or generate 5.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

NanoTech Gaming  vs.  Serina Therapeutics

NanoTech Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NanoTech Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, NanoTech Gaming is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Serina Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with NanoTech Gaming and Serina Therapeutics

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

The idea behind NanoTech Gaming and Serina Therapeutics 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.