Correlation Between NetSol Technologies and Voyager Acquisition

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

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

Diversification Opportunities for NetSol Technologies and Voyager Acquisition

-0.3

Correlation Coefficient

NetSol Technologies  Voyager Acquisition

Very good diversification

The 3 months correlation between NetSol and Voyager is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding NetSol Technologies and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp and NetSol Technologies 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 NetSol Technologies are associated (or correlated) with Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of NetSol Technologies i.e., NetSol Technologies and Voyager Acquisition go up and down completely randomly.

Pair Corralation between NetSol Technologies and Voyager Acquisition

Given the investment horizon of 90 days NetSol Technologies is expected to generate 21.23 times more return on investment than Voyager Acquisition. However, NetSol Technologies is 21.23 times more volatile than Voyager Acquisition Corp. It trades about 0.01 of its potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest  296.00  in NetSol Technologies on October 11, 2024 and sell it today you would lose (26.00) from holding NetSol Technologies or give up 8.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	14.14%
Values	Daily Returns

NetSol Technologies  vs.  Voyager Acquisition Corp

NetSol Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NetSol Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Voyager Acquisition Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with NetSol Technologies and Voyager Acquisition

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

The idea behind NetSol Technologies and Voyager Acquisition Corp 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 Valuation module to check real value of public entities based on technical and fundamental data.