Correlation Between Nexalin Technology and Vicarious Surgical

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

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

Diversification Opportunities for Nexalin Technology and Vicarious Surgical

-0.56

Correlation Coefficient

Nexalin Technology  Vicarious Surgical

Excellent diversification

The 3 months correlation between Nexalin and Vicarious is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nexalin Technology and Vicarious Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicarious Surgical and Nexalin Technology 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 Nexalin Technology are associated (or correlated) with Vicarious Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicarious Surgical has no effect on the direction of Nexalin Technology i.e., Nexalin Technology and Vicarious Surgical go up and down completely randomly.

Pair Corralation between Nexalin Technology and Vicarious Surgical

Considering the 90-day investment horizon Nexalin Technology is expected to under-perform the Vicarious Surgical. But the stock apears to be less risky and, when comparing its historical volatility, Nexalin Technology is 1.26 times less risky than Vicarious Surgical. The stock trades about -0.4 of its potential returns per unit of risk. The Vicarious Surgical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  31.00  in Vicarious Surgical on March 4, 2024 and sell it today you would earn a total of  1.00  from holding Vicarious Surgical or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nexalin Technology  vs.  Vicarious Surgical

Nexalin Technology

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nexalin Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Nexalin Technology disclosed solid returns over the last few months and may actually be approaching a breakup point.

Vicarious Surgical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vicarious Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vicarious Surgical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Nexalin Technology and Vicarious Surgical

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

The idea behind Nexalin Technology and Vicarious Surgical 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.