Correlation Between Nu Med and Ion Beam

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

By analyzing existing cross correlation between Nu Med Plus and Ion Beam Applications, you can compare the effects of market volatilities on Nu Med and Ion Beam 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 Nu Med with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nu Med and Ion Beam.

Diversification Opportunities for Nu Med and Ion Beam

0.24

Correlation Coefficient

Nu Med  Ion Beam

Modest diversification

The 3 months correlation between NUMD and Ion is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nu Med Plus and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Nu Med 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 Nu Med Plus are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Nu Med i.e., Nu Med and Ion Beam go up and down completely randomly.

Pair Corralation between Nu Med and Ion Beam

Given the investment horizon of 90 days Nu Med is expected to generate 2.28 times less return on investment than Ion Beam. In addition to that, Nu Med is 3.54 times more volatile than Ion Beam Applications. It trades about 0.02 of its total potential returns per unit of risk. Ion Beam Applications is currently generating about 0.18 per unit of volatility. If you would invest  1,115  in Ion Beam Applications on May 1, 2025 and sell it today you would earn a total of  324.00  from holding Ion Beam Applications or generate 29.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Nu Med Plus  vs.  Ion Beam Applications

Nu Med Plus

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Med Plus are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Nu Med may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ion Beam Applications

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ion Beam Applications are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Ion Beam reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nu Med and Ion Beam

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

The idea behind Nu Med Plus and Ion Beam Applications 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.