Correlation Between Nutex Health and Aclarion

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

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

Diversification Opportunities for Nutex Health and Aclarion

0.7

Correlation Coefficient

Nutex Health  Aclarion

Poor diversification

The 3 months correlation between Nutex and Aclarion is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nutex Health and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and Nutex Health 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 Nutex Health are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Nutex Health i.e., Nutex Health and Aclarion go up and down completely randomly.

Pair Corralation between Nutex Health and Aclarion

Given the investment horizon of 90 days Nutex Health is expected to under-perform the Aclarion. But the stock apears to be less risky and, when comparing its historical volatility, Nutex Health is 1.42 times less risky than Aclarion. The stock trades about -0.07 of its potential returns per unit of risk. The Aclarion is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Aclarion on March 10, 2024 and sell it today you would earn a total of  0.00  from holding Aclarion or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Nutex Health  vs.  Aclarion

Nutex Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nutex Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Aclarion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aclarion is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nutex Health and Aclarion

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

The idea behind Nutex Health and Aclarion 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.