Correlation Between Newlox Gold and Nutriband

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

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

Diversification Opportunities for Newlox Gold and Nutriband

-0.4

Correlation Coefficient

Newlox Gold  Nutriband

Very good diversification

The 3 months correlation between Newlox and Nutriband is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Newlox Gold Ventures and Nutriband in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutriband and Newlox Gold 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 Newlox Gold Ventures are associated (or correlated) with Nutriband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutriband has no effect on the direction of Newlox Gold i.e., Newlox Gold and Nutriband go up and down completely randomly.

Pair Corralation between Newlox Gold and Nutriband

Assuming the 90 days horizon Newlox Gold is expected to generate 9.57 times less return on investment than Nutriband. In addition to that, Newlox Gold is 1.19 times more volatile than Nutriband. It trades about 0.01 of its total potential returns per unit of risk. Nutriband is currently generating about 0.08 per unit of volatility. If you would invest  578.00  in Nutriband on May 7, 2025 and sell it today you would earn a total of  133.00  from holding Nutriband or generate 23.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Newlox Gold Ventures  vs.  Nutriband

Newlox Gold Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Newlox Gold Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Newlox Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Nutriband

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nutriband are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nutriband sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Newlox Gold and Nutriband

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

The idea behind Newlox Gold Ventures and Nutriband 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.