Correlation Between Nexgel and Daxor

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

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

Diversification Opportunities for Nexgel and Daxor

-0.02

Correlation Coefficient

Nexgel  Daxor

Good diversification

The 3 months correlation between Nexgel and Daxor is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Nexgel 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 Nexgel Inc are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Nexgel i.e., Nexgel and Daxor go up and down completely randomly.

Pair Corralation between Nexgel and Daxor

Given the investment horizon of 90 days Nexgel Inc is expected to under-perform the Daxor. In addition to that, Nexgel is 1.59 times more volatile than Daxor. It trades about -0.27 of its total potential returns per unit of risk. Daxor is currently generating about -0.03 per unit of volatility. If you would invest  769.00  in Daxor on December 2, 2024 and sell it today you would lose (13.00) from holding Daxor or give up 1.69% of portfolio value over 90 days.

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

Nexgel Inc  vs.  Daxor

Nexgel Inc

Risk-Adjusted Performance

Very Weak

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

Daxor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daxor 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 basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Nexgel and Daxor

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

The idea behind Nexgel Inc and Daxor 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.

Check out your portfolio center.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.