Correlation Between Nexoptic Technology and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Nexoptic Technology and Senvest Capital 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 Nexoptic Technology and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexoptic Technology Corp and Senvest Capital, you can compare the effects of market volatilities on Nexoptic Technology and Senvest Capital 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 Nexoptic Technology with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexoptic Technology and Senvest Capital.
Diversification Opportunities for Nexoptic Technology and Senvest Capital
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nexoptic and Senvest is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nexoptic Technology Corp and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and Nexoptic 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 Nexoptic Technology Corp are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Nexoptic Technology i.e., Nexoptic Technology and Senvest Capital go up and down completely randomly.
Pair Corralation between Nexoptic Technology and Senvest Capital
Assuming the 90 days horizon Nexoptic Technology Corp is expected to under-perform the Senvest Capital. In addition to that, Nexoptic Technology is 11.57 times more volatile than Senvest Capital. It trades about -0.04 of its total potential returns per unit of risk. Senvest Capital is currently generating about 0.18 per unit of volatility. If you would invest 34,500 in Senvest Capital on December 3, 2024 and sell it today you would earn a total of 4,750 from holding Senvest Capital or generate 13.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nexoptic Technology Corp vs. Senvest Capital
Performance |
Timeline |
Nexoptic Technology Corp |
Senvest Capital |
Nexoptic Technology and Senvest Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nexoptic Technology and Senvest Capital
The main advantage of trading using opposite Nexoptic Technology and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexoptic Technology position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.Nexoptic Technology vs. iA Financial | Nexoptic Technology vs. Sun Life Financial | Nexoptic Technology vs. Financial 15 Split | Nexoptic Technology vs. Manulife Financial Corp |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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