Correlation Between Nocopi Technologies and Microbix Biosystems

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

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

Diversification Opportunities for Nocopi Technologies and Microbix Biosystems

-0.14

Correlation Coefficient

Nocopi Technologies  Microbix Biosystems

Good diversification

The 3 months correlation between Nocopi and Microbix is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nocopi Technologies and Microbix Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbix Biosystems and Nocopi Technologies 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 Nocopi Technologies are associated (or correlated) with Microbix Biosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbix Biosystems has no effect on the direction of Nocopi Technologies i.e., Nocopi Technologies and Microbix Biosystems go up and down completely randomly.

Pair Corralation between Nocopi Technologies and Microbix Biosystems

Given the investment horizon of 90 days Nocopi Technologies is expected to generate 2.73 times more return on investment than Microbix Biosystems. However, Nocopi Technologies is 2.73 times more volatile than Microbix Biosystems. It trades about 0.04 of its potential returns per unit of risk. Microbix Biosystems is currently generating about -0.2 per unit of risk. If you would invest  150.00  in Nocopi Technologies on May 6, 2025 and sell it today you would earn a total of  5.00  from holding Nocopi Technologies or generate 3.33% return on investment over 90 days.

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

Nocopi Technologies  vs.  Microbix Biosystems

Nocopi Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nocopi Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Nocopi Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Microbix Biosystems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Microbix Biosystems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Nocopi Technologies and Microbix Biosystems

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

The idea behind Nocopi Technologies and Microbix Biosystems 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.