Correlation Between ScanTech and Neonode

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

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

Diversification Opportunities for ScanTech and Neonode

-0.62

Correlation Coefficient

ScanTech  Neonode

Excellent diversification

The 3 months correlation between ScanTech and Neonode is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Neonode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neonode and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Neonode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neonode has no effect on the direction of ScanTech i.e., ScanTech and Neonode go up and down completely randomly.

Pair Corralation between ScanTech and Neonode

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Neonode. In addition to that, ScanTech is 1.24 times more volatile than Neonode. It trades about -0.04 of its total potential returns per unit of risk. Neonode is currently generating about 0.16 per unit of volatility. If you would invest  1,031  in Neonode on May 17, 2025 and sell it today you would earn a total of  1,125  from holding Neonode or generate 109.12% return on investment over 90 days.

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

ScanTech AI Systems  vs.  Neonode

ScanTech AI Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanTech AI Systems 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 basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Neonode

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Neonode are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Neonode displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ScanTech and Neonode

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

The idea behind ScanTech AI Systems and Neonode 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.