Correlation Between Newlake Capital and Totl In

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

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

Diversification Opportunities for Newlake Capital and Totl In

0.0

Correlation Coefficient

Newlake Capital  Totl In

Pay attention - limited upside

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

Pair Corralation between Newlake Capital and Totl In

If you would invest  0.00  in Totl In Rl on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Totl In Rl or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Newlake Capital Partners  vs.  Totl In Rl

Newlake Capital Partners

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Newlake Capital Partners are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, Newlake Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Totl In Rl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Totl In Rl has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Totl In is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Newlake Capital and Totl In

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

The idea behind Newlake Capital Partners and Totl In Rl 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..