Correlation Between NXT Energy and BeWhere Holdings
Can any of the company-specific risk be diversified away by investing in both NXT Energy and BeWhere Holdings 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 NXT Energy and BeWhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXT Energy Solutions and BeWhere Holdings, you can compare the effects of market volatilities on NXT Energy and BeWhere Holdings 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 NXT Energy with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXT Energy and BeWhere Holdings.
Diversification Opportunities for NXT Energy and BeWhere Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NXT and BeWhere is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding NXT Energy Solutions and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and NXT Energy 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 NXT Energy Solutions are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of NXT Energy i.e., NXT Energy and BeWhere Holdings go up and down completely randomly.
Pair Corralation between NXT Energy and BeWhere Holdings
Assuming the 90 days horizon NXT Energy Solutions is expected to generate 2.25 times more return on investment than BeWhere Holdings. However, NXT Energy is 2.25 times more volatile than BeWhere Holdings. It trades about 0.05 of its potential returns per unit of risk. BeWhere Holdings is currently generating about 0.1 per unit of risk. If you would invest 16.00 in NXT Energy Solutions on September 1, 2024 and sell it today you would earn a total of 0.00 from holding NXT Energy Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NXT Energy Solutions vs. BeWhere Holdings
Performance |
| Timeline |
| NXT Energy Solutions |
| BeWhere Holdings |
NXT Energy and BeWhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXT Energy and BeWhere Holdings
The main advantage of trading using opposite NXT Energy and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXT Energy position performs unexpectedly, BeWhere Holdings 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 BeWhere Holdings will offset losses from the drop in BeWhere Holdings' long position.| NXT Energy vs. Dawson Geophysical | NXT Energy vs. Bri Chem Corp | NXT Energy vs. NCS Multistage Holdings | NXT Energy vs. Bristow Group |
| BeWhere Holdings vs. Baylin Technologies | BeWhere Holdings vs. Viavi Solutions | BeWhere Holdings vs. SatixFy Communications | BeWhere Holdings vs. Electronic Systems Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |