Correlation Between Chia and NuGene International

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

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

Diversification Opportunities for Chia and NuGene International

0.55

Correlation Coefficient

Chia  NuGene International

Very weak diversification

The 3 months correlation between Chia and NuGene is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Chia and NuGene International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuGene International and Chia 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 Chia are associated (or correlated) with NuGene International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuGene International has no effect on the direction of Chia i.e., Chia and NuGene International go up and down completely randomly.

Pair Corralation between Chia and NuGene International

Assuming the 90 days trading horizon Chia is expected to under-perform the NuGene International. But the crypto coin apears to be less risky and, when comparing its historical volatility, Chia is 3.47 times less risky than NuGene International. The crypto coin trades about -0.08 of its potential returns per unit of risk. The NuGene International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  0.40  in NuGene International on December 19, 2024 and sell it today you would lose (0.28) from holding NuGene International or give up 70.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.65%
Values	Daily Returns

Chia  vs.  NuGene International

Chia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chia 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 technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Chia shareholders.

NuGene International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NuGene International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, NuGene International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chia and NuGene International

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

The idea behind Chia and NuGene International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.