Correlation Between NovAccess Global and Curative Biotechnology

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

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

Diversification Opportunities for NovAccess Global and Curative Biotechnology

0.54

Correlation Coefficient

NovAccess Global  Curative Biotechnology

Very weak diversification

The 3 months correlation between NovAccess and Curative is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NovAccess Global and Curative Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curative Biotechnology and NovAccess Global 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 NovAccess Global are associated (or correlated) with Curative Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curative Biotechnology has no effect on the direction of NovAccess Global i.e., NovAccess Global and Curative Biotechnology go up and down completely randomly.

Pair Corralation between NovAccess Global and Curative Biotechnology

Given the investment horizon of 90 days NovAccess Global is expected to generate 13.91 times more return on investment than Curative Biotechnology. However, NovAccess Global is 13.91 times more volatile than Curative Biotechnology. It trades about 0.12 of its potential returns per unit of risk. Curative Biotechnology is currently generating about 0.01 per unit of risk. If you would invest  0.04  in NovAccess Global on May 3, 2025 and sell it today you would lose (0.03) from holding NovAccess Global or give up 75.0% of portfolio value over 90 days.

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

NovAccess Global  vs.  Curative Biotechnology

NovAccess Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NovAccess Global are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, NovAccess Global showed solid returns over the last few months and may actually be approaching a breakup point.

Curative Biotechnology

Risk-Adjusted Performance

Very Weak

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

Pair Trading with NovAccess Global and Curative Biotechnology

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

The idea behind NovAccess Global and Curative Biotechnology 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.