Correlation Between Chardan NexTech and Innovative Eyewear
Can any of the company-specific risk be diversified away by investing in both Chardan NexTech and Innovative Eyewear 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 Chardan NexTech and Innovative Eyewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chardan NexTech Acquisition and Innovative Eyewear, you can compare the effects of market volatilities on Chardan NexTech and Innovative Eyewear 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 Chardan NexTech with a short position of Innovative Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Innovative Eyewear.
Diversification Opportunities for Chardan NexTech and Innovative Eyewear
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chardan and Innovative is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Innovative Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Eyewear and Chardan NexTech 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 Chardan NexTech Acquisition are associated (or correlated) with Innovative Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Eyewear has no effect on the direction of Chardan NexTech i.e., Chardan NexTech and Innovative Eyewear go up and down completely randomly.
Pair Corralation between Chardan NexTech and Innovative Eyewear
Given the investment horizon of 90 days Chardan NexTech Acquisition is expected to generate 6.6 times more return on investment than Innovative Eyewear. However, Chardan NexTech is 6.6 times more volatile than Innovative Eyewear. It trades about 0.2 of its potential returns per unit of risk. Innovative Eyewear is currently generating about -0.07 per unit of risk. If you would invest 27.00 in Chardan NexTech Acquisition on July 20, 2025 and sell it today you would earn a total of 109.00 from holding Chardan NexTech Acquisition or generate 403.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chardan NexTech Acquisition vs. Innovative Eyewear
Performance |
| Timeline |
| Chardan NexTech Acqu |
| Innovative Eyewear |
Chardan NexTech and Innovative Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chardan NexTech and Innovative Eyewear
The main advantage of trading using opposite Chardan NexTech and Innovative Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech position performs unexpectedly, Innovative Eyewear 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 Innovative Eyewear will offset losses from the drop in Innovative Eyewear's long position.| Chardan NexTech vs. ESS Tech | Chardan NexTech vs. RF Industries | Chardan NexTech vs. Stardust Power | Chardan NexTech vs. Flux Power Holdings |
| Innovative Eyewear vs. Predictive Oncology | Innovative Eyewear vs. Biocardia | Innovative Eyewear vs. Creative Medical Technology | Innovative Eyewear vs. DIH Holdings US, |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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