Correlation Between Solid Impact and Nano One

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

By analyzing existing cross correlation between Solid Impact Investments and Nano One Materials, you can compare the effects of market volatilities on Solid Impact and Nano One 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 Solid Impact with a short position of Nano One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Impact and Nano One.

Diversification Opportunities for Solid Impact and Nano One

0.0

Correlation Coefficient

Solid Impact  Nano One

Pay attention - limited upside

The 3 months correlation between Solid and Nano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid Impact Investments and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials and Solid Impact 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 Solid Impact Investments are associated (or correlated) with Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of Solid Impact i.e., Solid Impact and Nano One go up and down completely randomly.

Pair Corralation between Solid Impact and Nano One

If you would invest  66.00  in Nano One Materials on April 20, 2025 and sell it today you would earn a total of  32.00  from holding Nano One Materials or generate 48.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Solid Impact Investments  vs.  Nano One Materials

Solid Impact Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Solid Impact Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Solid Impact is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Nano One Materials

Risk-Adjusted Performance

Good

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

Pair Trading with Solid Impact and Nano One

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

The idea behind Solid Impact Investments and Nano One Materials 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.