Correlation Between Nu Med and Rafina Innovations

Can any of the company-specific risk be diversified away by investing in both Nu Med and Rafina Innovations 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 Rafina Innovations 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 Rafina Innovations, you can compare the effects of market volatilities on Nu Med and Rafina Innovations 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 Rafina Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nu Med and Rafina Innovations.

Diversification Opportunities for Nu Med and Rafina Innovations

0.0

Correlation Coefficient

Nu Med  Rafina Innovations

Pay attention - limited upside

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

Pair Corralation between Nu Med and Rafina Innovations

If you would invest  4.50  in Nu Med Plus on May 4, 2025 and sell it today you would lose (0.06) from holding Nu Med Plus or give up 1.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Nu Med Plus  vs.  Rafina Innovations

Nu Med Plus

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Med Plus are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Nu Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Rafina Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rafina Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Rafina Innovations is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nu Med and Rafina Innovations

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

The idea behind Nu Med Plus and Rafina Innovations 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.