Correlation Between Nexalin Technology and IShares Future

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

By analyzing existing cross correlation between Nexalin Technology and iShares Future AI, you can compare the effects of market volatilities on Nexalin Technology and IShares Future 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 Nexalin Technology with a short position of IShares Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexalin Technology and IShares Future.

Diversification Opportunities for Nexalin Technology and IShares Future

0.81

Correlation Coefficient

Nexalin Technology  IShares Future

Very poor diversification

The 3 months correlation between Nexalin and IShares is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and iShares Future AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Future AI and Nexalin Technology 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 Nexalin Technology are associated (or correlated) with IShares Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Future AI has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and IShares Future go up and down completely randomly.

Pair Corralation between Nexalin Technology and IShares Future

Considering the 90-day investment horizon Nexalin Technology is expected to under-perform the IShares Future. In addition to that, Nexalin Technology is 3.01 times more volatile than iShares Future AI. It trades about -0.06 of its total potential returns per unit of risk. iShares Future AI is currently generating about -0.09 per unit of volatility. If you would invest  3,734  in iShares Future AI on December 29, 2024 and sell it today you would lose (470.00) from holding iShares Future AI or give up 12.59% of portfolio value over 90 days.

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

Nexalin Technology  vs.  iShares Future AI

Nexalin Technology

Risk-Adjusted Performance

Very Weak

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

iShares Future AI

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Future AI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with Nexalin Technology and IShares Future

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

The idea behind Nexalin Technology and iShares Future AI 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.