Correlation Between Stryve Foods and NUZE Old

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

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

Diversification Opportunities for Stryve Foods and NUZE Old

0.0

Correlation Coefficient

Stryve Foods  NUZE Old

Pay attention - limited upside

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

Pair Corralation between Stryve Foods and NUZE Old

If you would invest  67.00  in Stryve Foods on December 27, 2024 and sell it today you would lose (1.00) from holding Stryve Foods or give up 1.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Stryve Foods  vs.  NUZE Old

Stryve Foods

Risk-Adjusted Performance

Insignificant

Over the last 90 days Stryve Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Stryve Foods showed solid returns over the last few months and may actually be approaching a breakup point.

NUZE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days NUZE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, NUZE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Stryve Foods and NUZE Old

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

The idea behind Stryve Foods and NUZE Old 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 Anywhere module to track or share privately all of your investments from the convenience of any device.