Correlation Between Stereotaxis and Nexgel

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

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

Diversification Opportunities for Stereotaxis and Nexgel

0.18

Correlation Coefficient

Stereotaxis  Nexgel

Average diversification

The 3 months correlation between Stereotaxis and Nexgel is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stereotaxis and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc and Stereotaxis 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 Stereotaxis are associated (or correlated) with Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Stereotaxis i.e., Stereotaxis and Nexgel go up and down completely randomly.

Pair Corralation between Stereotaxis and Nexgel

Given the investment horizon of 90 days Stereotaxis is expected to generate 1.55 times less return on investment than Nexgel. But when comparing it to its historical volatility, Stereotaxis is 1.04 times less risky than Nexgel. It trades about 0.04 of its potential returns per unit of risk. Nexgel Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  281.00  in Nexgel Inc on September 2, 2024 and sell it today you would earn a total of  37.00  from holding Nexgel Inc or generate 13.17% return on investment over 90 days.

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

Stereotaxis  vs.  Nexgel Inc

Stereotaxis

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stereotaxis are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Stereotaxis may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Nexgel Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nexgel Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, Nexgel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stereotaxis and Nexgel

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

The idea behind Stereotaxis and Nexgel Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.