Correlation Between NanoFlex Power and Formcap Corp

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

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

Diversification Opportunities for NanoFlex Power and Formcap Corp

1.0

Correlation Coefficient

NanoFlex Power  Formcap Corp

No risk reduction

The 3 months correlation between NanoFlex and Formcap is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding NanoFlex Power Corp and Formcap Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formcap Corp and NanoFlex Power 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 NanoFlex Power Corp are associated (or correlated) with Formcap Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formcap Corp has no effect on the direction of NanoFlex Power i.e., NanoFlex Power and Formcap Corp go up and down completely randomly.

Pair Corralation between NanoFlex Power and Formcap Corp

If you would invest  0.21  in Formcap Corp on July 26, 2025 and sell it today you would earn a total of  0.00  from holding Formcap Corp or generate 0.0% return on investment over 90 days.

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

NanoFlex Power Corp  vs.  Formcap Corp

NanoFlex Power Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days NanoFlex Power Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NanoFlex Power is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Formcap Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Formcap Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Formcap Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with NanoFlex Power and Formcap Corp

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

The idea behind NanoFlex Power Corp and Formcap Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.