Correlation Between Nuvve Holding and Now

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

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

Diversification Opportunities for Nuvve Holding and Now

-0.26

Correlation Coefficient

Nuvve Holding  Now

Very good diversification

The 3 months correlation between Nuvve and Now is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nuvve Holding Corp and Now Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Now Inc and Nuvve Holding 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 Nuvve Holding Corp are associated (or correlated) with Now. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Now Inc has no effect on the direction of Nuvve Holding i.e., Nuvve Holding and Now go up and down completely randomly.

Pair Corralation between Nuvve Holding and Now

Given the investment horizon of 90 days Nuvve Holding Corp is expected to under-perform the Now. In addition to that, Nuvve Holding is 4.18 times more volatile than Now Inc. It trades about -0.06 of its total potential returns per unit of risk. Now Inc is currently generating about 0.01 per unit of volatility. If you would invest  1,316  in Now Inc on October 15, 2024 and sell it today you would lose (33.00) from holding Now Inc or give up 2.51% of portfolio value over 90 days.

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

Nuvve Holding Corp  vs.  Now Inc

Nuvve Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuvve Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Now Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Now Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Now is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Nuvve Holding and Now

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

The idea behind Nuvve Holding Corp and Now Inc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.