Novonix Correlations

NVX Stock  USD 2.01  0.13  6.07%   
The correlation of Novonix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Novonix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Novonix Ltd ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Weak diversification

The correlation between Novonix Ltd ADR and NYA is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Novonix Ltd ADR and NYA in the same portfolio, assuming nothing else is changed.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novonix Ltd ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
  
The ability to find closely correlated positions to Novonix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Novonix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Novonix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Novonix Ltd ADR to buy it.

Moving against Novonix Stock

  0.43ENCPW Energem Corp WarrantPairCorr
  0.42ENS EnersysPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
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KEENR
DCFCHOLI
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High negative correlations   
DCFCADSEW
HOLIENR
ADSEWPLPC
ADSEWHOLI
KEHOLI
AEISHOLI

Risk-Adjusted Indicators

There is a big difference between Novonix Stock performing well and Novonix Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Novonix's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Novonix without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Novonix Corporate Management

Elected by the shareholders, the Novonix's board of directors comprises two types of representatives: Novonix inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Novonix. The board's role is to monitor Novonix's management team and ensure that shareholders' interests are well served. Novonix's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Novonix's outside directors are responsible for providing unbiased perspectives on the board's policies.
BBus CAFinancial SecProfile
Darcy MacdougaldPres SolutionsProfile
Nicholas LiverisChief OfficerProfile
Rashda ButtarChief OfficerProfile
J YorkSr DevelProfile
John BurnsChief OfficerProfile

Already Invested in Novonix Ltd ADR?

The danger of trading Novonix Ltd ADR is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Novonix is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Novonix. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Novonix Ltd ADR is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Novonix Ltd ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Novonix's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Novonix Ltd Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Novonix Ltd Adr Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novonix Ltd ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running Novonix's price analysis, check to measure Novonix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Novonix is operating at the current time. Most of Novonix's value examination focuses on studying past and present price action to predict the probability of Novonix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Novonix's price. Additionally, you may evaluate how the addition of Novonix to your portfolios can decrease your overall portfolio volatility.
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Is Novonix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Novonix. If investors know Novonix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Novonix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.33)
Revenue Per Share
0.068
Quarterly Revenue Growth
0.233
Return On Assets
(0.12)
Return On Equity
(0.23)
The market value of Novonix Ltd ADR is measured differently than its book value, which is the value of Novonix that is recorded on the company's balance sheet. Investors also form their own opinion of Novonix's value that differs from its market value or its book value, called intrinsic value, which is Novonix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Novonix's market value can be influenced by many factors that don't directly affect Novonix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Novonix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Novonix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novonix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.