Correlation Between Elixinol Global and Next Generation
Can any of the company-specific risk be diversified away by investing in both Elixinol Global and Next Generation 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 Elixinol Global and Next Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elixinol Global and Next Generation Management, you can compare the effects of market volatilities on Elixinol Global and Next Generation 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 Elixinol Global with a short position of Next Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elixinol Global and Next Generation.
Diversification Opportunities for Elixinol Global and Next Generation
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Elixinol and Next is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Next Generation Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Generation Mana and Elixinol Global 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 Elixinol Global are associated (or correlated) with Next Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Generation Mana has no effect on the direction of Elixinol Global i.e., Elixinol Global and Next Generation go up and down completely randomly.
Pair Corralation between Elixinol Global and Next Generation
Assuming the 90 days horizon Elixinol Global is expected to generate 2.77 times more return on investment than Next Generation. However, Elixinol Global is 2.77 times more volatile than Next Generation Management. It trades about 0.23 of its potential returns per unit of risk. Next Generation Management is currently generating about 0.1 per unit of risk. If you would invest 0.48 in Elixinol Global on August 26, 2025 and sell it today you would earn a total of 0.18 from holding Elixinol Global or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elixinol Global vs. Next Generation Management
Performance |
| Timeline |
| Elixinol Global |
| Next Generation Mana |
Elixinol Global and Next Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elixinol Global and Next Generation
The main advantage of trading using opposite Elixinol Global and Next Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Next Generation 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 Next Generation will offset losses from the drop in Next Generation's long position.| Elixinol Global vs. China Tontine Wines | Elixinol Global vs. Sportsmans | Elixinol Global vs. Mitsui Chemicals ADR | Elixinol Global vs. Delaware Investments Florida |
| Next Generation vs. Neuberger Berman Small | Next Generation vs. Sumitomo Corp ADR | Next Generation vs. Beazer Homes USA | Next Generation vs. Vanguard Market Neutral |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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