Correlation Between Nextplat Corp and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and CCSB Financial 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 CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and CCSB Financial Corp, you can compare the effects of market volatilities on Nextplat Corp and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and CCSB Financial.
Diversification Opportunities for Nextplat Corp and CCSB Financial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nextplat and CCSB is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and CCSB Financial go up and down completely randomly.
Pair Corralation between Nextplat Corp and CCSB Financial
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the CCSB Financial. In addition to that, Nextplat Corp is 8.81 times more volatile than CCSB Financial Corp. It trades about -0.18 of its total potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.11 per unit of volatility. If you would invest 1,215 in CCSB Financial Corp on September 1, 2024 and sell it today you would lose (25.00) from holding CCSB Financial Corp or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. CCSB Financial Corp
Performance |
| Timeline |
| Nextplat Corp |
| CCSB Financial Corp |
Nextplat Corp and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and CCSB Financial
The main advantage of trading using opposite Nextplat Corp and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
| CCSB Financial vs. RCI Hospitality Holdings | CCSB Financial vs. SL Green Realty | CCSB Financial vs. JBG SMITH Properties | CCSB Financial vs. Addus HomeCare |
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 Stocks Directory module to find actively traded stocks across global markets.
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