Correlation Between NESNVX and Lucid

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

By analyzing existing cross correlation between NESNVX 15 14 SEP 28 and Lucid Group, you can compare the effects of market volatilities on NESNVX and Lucid 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 NESNVX with a short position of Lucid. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESNVX and Lucid.

Diversification Opportunities for NESNVX and Lucid

0.0

Correlation Coefficient

NESNVX  Lucid

Pay attention - limited upside

The 3 months correlation between NESNVX and Lucid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NESNVX 15 14 SEP 28 and Lucid Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Group and NESNVX 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 NESNVX 15 14 SEP 28 are associated (or correlated) with Lucid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Group has no effect on the direction of NESNVX i.e., NESNVX and Lucid go up and down completely randomly.

Pair Corralation between NESNVX and Lucid

If you would invest  310.00  in Lucid Group on October 23, 2024 and sell it today you would lose (3.00) from holding Lucid Group or give up 0.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

NESNVX 15 14 SEP 28  vs.  Lucid Group

NESNVX 15 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 15 14 SEP 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lucid Group

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lucid Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating forward indicators, Lucid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NESNVX and Lucid

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

The idea behind NESNVX 15 14 SEP 28 and Lucid Group 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.