Correlation Between Nextplat Corp and Atlantic American
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and Atlantic American 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 Nextplat Corp and Atlantic American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Atlantic American, you can compare the effects of market volatilities on Nextplat Corp and Atlantic American 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 Nextplat Corp with a short position of Atlantic American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Atlantic American.
Diversification Opportunities for Nextplat Corp and Atlantic American
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nextplat and Atlantic is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Atlantic American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic American and Nextplat Corp 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 Nextplat Corp are associated (or correlated) with Atlantic American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic American has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Atlantic American go up and down completely randomly.
Pair Corralation between Nextplat Corp and Atlantic American
Given the investment horizon of 90 days Nextplat Corp is expected to generate 1.55 times more return on investment than Atlantic American. However, Nextplat Corp is 1.55 times more volatile than Atlantic American. It trades about 0.0 of its potential returns per unit of risk. Atlantic American is currently generating about -0.02 per unit of risk. If you would invest 162.00 in Nextplat Corp on August 23, 2024 and sell it today you would lose (72.00) from holding Nextplat Corp or give up 44.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Atlantic American
Performance |
| Timeline |
| Nextplat Corp |
| Atlantic American |
Nextplat Corp and Atlantic American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Atlantic American
The main advantage of trading using opposite Nextplat Corp and Atlantic American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, Atlantic American 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 Atlantic American will offset losses from the drop in Atlantic American's long position.| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
| Atlantic American vs. CNO Financial Group | Atlantic American vs. MetLife Preferred Stock | Atlantic American vs. FG Annuities Life | Atlantic American vs. Prudential Public Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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