Correlation Between Sui and NULS

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

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

Diversification Opportunities for Sui and NULS

0.53

Correlation Coefficient

Sui  NULS

Very weak diversification

The 3 months correlation between Sui and NULS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sui and NULS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NULS and Sui 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 Sui are associated (or correlated) with NULS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NULS has no effect on the direction of Sui i.e., Sui and NULS go up and down completely randomly.

Pair Corralation between Sui and NULS

Assuming the 90 days trading horizon Sui is expected to generate 0.9 times more return on investment than NULS. However, Sui is 1.11 times less risky than NULS. It trades about 0.0 of its potential returns per unit of risk. NULS is currently generating about -0.06 per unit of risk. If you would invest  344.00  in Sui on November 27, 2024 and sell it today you would lose (51.00) from holding Sui or give up 14.83% of portfolio value over 90 days.

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

Sui  vs.  NULS

Sui

Risk-Adjusted Performance

Very Weak

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

NULS

Risk-Adjusted Performance

Very Weak

Over the last 90 days NULS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for NULS shareholders.

Pair Trading with Sui and NULS

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

The idea behind Sui and NULS 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.