NexPoint Diversified Correlations

NXDT-PA Preferred Stock

16.11 0.02 0.12%

The current 90-days correlation between NexPoint Diversified Real and SiriusPoint is 0.03 (i.e., Significant diversification). The correlation of NexPoint Diversified is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

NexPoint Diversified Correlation With Market

Significant diversification

The correlation between NexPoint Diversified Real and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NexPoint Diversified Real and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to NexPoint Diversified could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NexPoint Diversified when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NexPoint Diversified - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NexPoint Diversified Real to buy it.

Moving together with NexPoint Preferred Stock

0.82	CTO-PA	CTO Realty Growth	Pair Corr
0.61	AHH-PA	Armada Hoffler Properties	Pair Corr
0.89	MDV-PA	Modiv Inc	Pair Corr
0.74	GOODN	Gladstone Commercial Corp	Pair Corr
0.81	GOODO	Gladstone Commercial Corp	Pair Corr
0.85	GNL-PA	Global Net Lease	Pair Corr
0.85	UE	Urban Edge Properties	Pair Corr
0.63	VNO-PL	Vornado Realty Trust	Pair Corr
0.79	VNO-PM	Vornado Realty Trust	Pair Corr
0.78	VNO-PN	Vornado Realty Trust	Pair Corr
0.73	VNO-PO	Vornado Realty Trust	Pair Corr
0.79	MITT-PA	AG Mortgage Investment	Pair Corr
0.85	MITT-PB	AG Mortgage Investment	Pair Corr

Moving against NexPoint Preferred Stock

0.77	RC	Ready Capital Corp	Pair Corr
0.69	UK	Ucommune International	Pair Corr
0.67	FR	First Industrial Realty	Pair Corr
0.56	SQFTP	Presidio Property Trust	Pair Corr
0.43	PW	Power REIT	Pair Corr
0.38	O	Realty Income	Pair Corr
0.68	AHT-PG	Ashford Hospitality Trust	Pair Corr
0.61	ECRO	Ecc Cap Corp	Pair Corr
0.58	AHT-PH	Ashford Hospitality Trust	Pair Corr
0.58	VINO	Gaucho Group Holdings	Pair Corr
0.56	AHT-PF	Ashford Hospitality Trust	Pair Corr
0.54	VTMX	Corporacin Inmobiliaria	Pair Corr
0.53	AHT-PI	Ashford Hospitality Trust	Pair Corr
0.45	VICI	VICI Properties	Pair Corr
0.33	ELME	Elme Communities	Pair Corr

Related Correlations Analysis

	NXDT	PSEC-PA	RC-PE	SPNT-PB	RITM-PD
NXDT		0.25	0.19	-0.31	-0.02	NXDT
PSEC-PA	0.25		0.73	0.3	0.52	PSEC-PA
RC-PE	0.19	0.73		0.42	0.76	RC-PE
SPNT-PB	-0.31	0.3	0.42		0.82	SPNT-PB
RITM-PD	-0.02	0.52	0.76	0.82		RITM-PD
	NXDT	PSEC-PA	RC-PE	SPNT-PB	RITM-PD

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

RITM-PD	+ 0.82	SPNT-PB
RITM-PD	+ 0.76	RC-PE
RC-PE	+ 0.73	PSEC-PA
RITM-PD	+ 0.52	PSEC-PA
SPNT-PB	+ 0.42	RC-PE
SPNT-PB	+ 0.3	PSEC-PA

High negative correlations

SPNT-PB	- 0.31	NXDT
RITM-PD	- 0.02	NXDT

Risk-Adjusted Indicators

There is a big difference between NexPoint Preferred Stock performing well and NexPoint Diversified Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze NexPoint Diversified's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NXDT	1.76	(0.08)	(0.03)	0.01	1.98	(2.18)	4.22	(3.64)	11.44
PSEC-PA	1.74	0.08	0.00	3.34	2.25	(1.89)	3.23	(3.94)	11.91
RC-PE	0.47	0.02	(0.09)	0.39	0.57	(0.53)	1.07	(1.00)	4.02
SPNT-PB	0.21	0.03	(0.25)	(0.41)	0.07	(0.25)	0.52	(0.36)	1.04
RITM-PD	0.31	0.07	(0.02)	0.58	0.00	(0.43)	0.83	(0.50)	1.87

Be your own money manager

Our tools can tell you how much better you can do entering a position in NexPoint Diversified without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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NexPoint Diversified Corporate Management

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Kurtis Plumer	Portfolio Mang	Profile
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