Correlation Between NanoTech Gaming and SCI Engineered

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Can any of the company-specific risk be diversified away by investing in both NanoTech Gaming and SCI Engineered 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 NanoTech Gaming and SCI Engineered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoTech Gaming and SCI Engineered Materials, you can compare the effects of market volatilities on NanoTech Gaming and SCI Engineered 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 NanoTech Gaming with a short position of SCI Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoTech Gaming and SCI Engineered.

Diversification Opportunities for NanoTech Gaming and SCI Engineered

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between NanoTech Gaming and SCI Engineered

If you would invest  400.00  in SCI Engineered Materials on September 5, 2025 and sell it today you would earn a total of  100.00  from holding SCI Engineered Materials or generate 25.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

NanoTech Gaming  vs.  SCI Engineered Materials

 Performance 
       Timeline  
NanoTech Gaming 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days NanoTech Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, NanoTech Gaming is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
SCI Engineered Materials 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SCI Engineered Materials are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting forward indicators, SCI Engineered sustained solid returns over the last few months and may actually be approaching a breakup point.

NanoTech Gaming and SCI Engineered Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NanoTech Gaming and SCI Engineered

The main advantage of trading using opposite NanoTech Gaming and SCI Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoTech Gaming position performs unexpectedly, SCI Engineered 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 SCI Engineered will offset losses from the drop in SCI Engineered's long position.
The idea behind NanoTech Gaming and SCI Engineered Materials 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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