Correlation Between IGEN Networks and NextPlat Corp
Can any of the company-specific risk be diversified away by investing in both IGEN Networks and NextPlat Corp 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 IGEN Networks and NextPlat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGEN Networks Corp and NextPlat Corp, you can compare the effects of market volatilities on IGEN Networks and NextPlat Corp 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 IGEN Networks with a short position of NextPlat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGEN Networks and NextPlat Corp.
Diversification Opportunities for IGEN Networks and NextPlat Corp
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IGEN and NextPlat is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding IGEN Networks Corp and NextPlat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextPlat Corp and IGEN Networks 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 IGEN Networks Corp are associated (or correlated) with NextPlat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextPlat Corp has no effect on the direction of IGEN Networks i.e., IGEN Networks and NextPlat Corp go up and down completely randomly.
Pair Corralation between IGEN Networks and NextPlat Corp
Given the investment horizon of 90 days IGEN Networks Corp is expected to generate 17.18 times more return on investment than NextPlat Corp. However, IGEN Networks is 17.18 times more volatile than NextPlat Corp. It trades about 0.11 of its potential returns per unit of risk. NextPlat Corp is currently generating about -0.06 per unit of risk. If you would invest 0.01 in IGEN Networks Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
IGEN Networks Corp vs. NextPlat Corp
Performance |
| Timeline |
| IGEN Networks Corp |
| NextPlat Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IGEN Networks and NextPlat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGEN Networks and NextPlat Corp
The main advantage of trading using opposite IGEN Networks and NextPlat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGEN Networks position performs unexpectedly, NextPlat Corp 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 NextPlat Corp will offset losses from the drop in NextPlat Corp's long position.| IGEN Networks vs. Waldencast Acquisition Corp | IGEN Networks vs. Alkami Technology | IGEN Networks vs. ADEIA P | IGEN Networks vs. Paycor HCM |
| NextPlat Corp vs. Ke Holdings | NextPlat Corp vs. nCino Inc | NextPlat Corp vs. Kingsoft Cloud Holdings | NextPlat Corp vs. Jfrog |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |