Correlation Between NCino and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both NCino 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 NCino and Nextplat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nCino Inc and Nextplat Corp, you can compare the effects of market volatilities on NCino 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 NCino with a short position of Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCino and Nextplat Corp.
Diversification Opportunities for NCino and Nextplat Corp
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NCino and Nextplat is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding nCino Inc and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and NCino 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 nCino Inc 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 NCino i.e., NCino and Nextplat Corp go up and down completely randomly.
Pair Corralation between NCino and Nextplat Corp
Given the investment horizon of 90 days nCino Inc is expected to generate 0.28 times more return on investment than Nextplat Corp. However, nCino Inc is 3.59 times less risky than Nextplat Corp. It trades about 0.28 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.18 per unit of risk. If you would invest 3,730 in nCino Inc on September 1, 2024 and sell it today you would earn a total of 469.00 from holding nCino Inc or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
nCino Inc vs. Nextplat Corp
Performance |
| Timeline |
| nCino Inc |
| Nextplat Corp |
NCino and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCino and Nextplat Corp
The main advantage of trading using opposite NCino and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCino 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.| NCino vs. Clearwater Analytics Holdings | NCino vs. Meridianlink | NCino vs. Envestnet | NCino vs. Bigcommerce Holdings |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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