Correlation Between Nw Tech and FingerMotion

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

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

Diversification Opportunities for Nw Tech and FingerMotion

0.0

Correlation Coefficient

Nw Tech  FingerMotion

Pay attention - limited upside

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

Pair Corralation between Nw Tech and FingerMotion

If you would invest  0.01  in Nw Tech Capital on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Nw Tech Capital or generate 0.0% return on investment over 90 days.

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

Nw Tech Capital  vs.  FingerMotion

Nw Tech Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nw Tech Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nw Tech is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

FingerMotion

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nw Tech and FingerMotion

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

The idea behind Nw Tech Capital and FingerMotion 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..