Correlation Between Nano Labs and MKDWELL Tech

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

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

Diversification Opportunities for Nano Labs and MKDWELL Tech

-0.47

Correlation Coefficient

Nano Labs  MKDWELL Tech

Very good diversification

The 3 months correlation between Nano and MKDWELL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and MKDWELL Tech Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MKDWELL Tech Ordinary and Nano Labs 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 Nano Labs are associated (or correlated) with MKDWELL Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MKDWELL Tech Ordinary has no effect on the direction of Nano Labs i.e., Nano Labs and MKDWELL Tech go up and down completely randomly.

Pair Corralation between Nano Labs and MKDWELL Tech

Allowing for the 90-day total investment horizon Nano Labs is expected to generate 2.95 times more return on investment than MKDWELL Tech. However, Nano Labs is 2.95 times more volatile than MKDWELL Tech Ordinary. It trades about 0.06 of its potential returns per unit of risk. MKDWELL Tech Ordinary is currently generating about -0.08 per unit of risk. If you would invest  468.00  in Nano Labs on May 5, 2025 and sell it today you would earn a total of  8.00  from holding Nano Labs or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nano Labs  vs.  MKDWELL Tech Ordinary

Nano Labs

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Labs are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nano Labs sustained solid returns over the last few months and may actually be approaching a breakup point.

MKDWELL Tech Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days MKDWELL Tech Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Nano Labs and MKDWELL Tech

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

The idea behind Nano Labs and MKDWELL Tech Ordinary 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.