Correlation Between InTest and Nano Labs

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Can any of the company-specific risk be diversified away by investing in both InTest and Nano Labs 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 InTest and Nano Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InTest and Nano Labs, you can compare the effects of market volatilities on InTest and Nano Labs 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 InTest with a short position of Nano Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Nano Labs.

Diversification Opportunities for InTest and Nano Labs

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between InTest and Nano is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding InTest and Nano Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Labs and InTest 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 InTest are associated (or correlated) with Nano Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Labs has no effect on the direction of InTest i.e., InTest and Nano Labs go up and down completely randomly.

Pair Corralation between InTest and Nano Labs

Given the investment horizon of 90 days InTest is expected to under-perform the Nano Labs. But the stock apears to be less risky and, when comparing its historical volatility, InTest is 2.74 times less risky than Nano Labs. The stock trades about -0.04 of its potential returns per unit of risk. The Nano Labs is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  170.00  in Nano Labs on December 29, 2023 and sell it today you would lose (9.00) from holding Nano Labs or give up 5.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

InTest  vs.  Nano Labs

 Performance 
       Timeline  
InTest 

Risk-Adjusted Performance

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Over the last 90 days InTest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Nano Labs 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Nano Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the ETF investors.

InTest and Nano Labs Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with InTest and Nano Labs

The main advantage of trading using opposite InTest and Nano Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Nano Labs 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 Nano Labs will offset losses from the drop in Nano Labs' long position.
The idea behind InTest and Nano Labs 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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