Correlation Between NovAccess Global and Futuris

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

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

Diversification Opportunities for NovAccess Global and Futuris

-0.2

Correlation Coefficient

NovAccess Global  Futuris

Good diversification

The 3 months correlation between NovAccess and Futuris is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NovAccess Global and Futuris Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futuris Company 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 Futuris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futuris Company has no effect on the direction of NovAccess Global i.e., NovAccess Global and Futuris go up and down completely randomly.

Pair Corralation between NovAccess Global and Futuris

Given the investment horizon of 90 days NovAccess Global is expected to generate 8.26 times more return on investment than Futuris. However, NovAccess Global is 8.26 times more volatile than Futuris Company. It trades about 0.12 of its potential returns per unit of risk. Futuris Company is currently generating about 0.05 per unit of risk. If you would invest  0.04  in NovAccess Global on May 2, 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 Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

NovAccess Global  vs.  Futuris Company

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.

Futuris Company

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Futuris Company are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Futuris unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NovAccess Global and Futuris

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

The idea behind NovAccess Global and Futuris Company 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.