Correlation Between Neo Performance and Retractable Technologies
Can any of the company-specific risk be diversified away by investing in both Neo Performance and Retractable Technologies 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 Neo Performance and Retractable Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neo Performance Materials and Retractable Technologies, you can compare the effects of market volatilities on Neo Performance and Retractable Technologies 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 Neo Performance with a short position of Retractable Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neo Performance and Retractable Technologies.
Diversification Opportunities for Neo Performance and Retractable Technologies
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neo and Retractable is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Neo Performance Materials and Retractable Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retractable Technologies and Neo Performance 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 Neo Performance Materials are associated (or correlated) with Retractable Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retractable Technologies has no effect on the direction of Neo Performance i.e., Neo Performance and Retractable Technologies go up and down completely randomly.
Pair Corralation between Neo Performance and Retractable Technologies
Assuming the 90 days horizon Neo Performance Materials is expected to generate 1.4 times more return on investment than Retractable Technologies. However, Neo Performance is 1.4 times more volatile than Retractable Technologies. It trades about 0.03 of its potential returns per unit of risk. Retractable Technologies is currently generating about 0.02 per unit of risk. If you would invest 1,214 in Neo Performance Materials on September 11, 2025 and sell it today you would earn a total of 13.00 from holding Neo Performance Materials or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neo Performance Materials vs. Retractable Technologies
Performance |
| Timeline |
| Neo Performance Materials |
| Retractable Technologies |
Neo Performance and Retractable Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neo Performance and Retractable Technologies
The main advantage of trading using opposite Neo Performance and Retractable Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neo Performance position performs unexpectedly, Retractable Technologies 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 Retractable Technologies will offset losses from the drop in Retractable Technologies' long position.| Neo Performance vs. Arkema SA ADR | Neo Performance vs. Johnson Matthey Plc | Neo Performance vs. Croda International Plc | Neo Performance vs. Sumitomo Chemical Co |
| Retractable Technologies vs. Nexgel Inc | Retractable Technologies vs. Harvard Bioscience | Retractable Technologies vs. Nexalin Technology | Retractable Technologies vs. Neurosense Therapeutics |
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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