Correlation Between Nogin and American Software

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

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

Diversification Opportunities for Nogin and American Software

-0.79

Correlation Coefficient

Nogin  American Software

Pay attention - limited upside

The 3 months correlation between Nogin and American is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nogin Inc and American Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Software and Nogin 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 Nogin Inc are associated (or correlated) with American Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Software has no effect on the direction of Nogin i.e., Nogin and American Software go up and down completely randomly.

Pair Corralation between Nogin and American Software

If you would invest  1.28  in Nogin Inc on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Nogin Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	7.14%
Values	Daily Returns

Nogin Inc  vs.  American Software

Nogin Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nogin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Nogin is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

American Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days American Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Nogin and American Software

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

The idea behind Nogin Inc and American Software 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.