Correlation Between Nextplat Corp and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and GEN Restaurant 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 GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and GEN Restaurant Group,, you can compare the effects of market volatilities on Nextplat Corp and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and GEN Restaurant.
Diversification Opportunities for Nextplat Corp and GEN Restaurant
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nextplat and GEN is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and GEN Restaurant go up and down completely randomly.
Pair Corralation between Nextplat Corp and GEN Restaurant
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the GEN Restaurant. In addition to that, Nextplat Corp is 1.15 times more volatile than GEN Restaurant Group,. It trades about -0.28 of its total potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.31 per unit of volatility. If you would invest 654.00 in GEN Restaurant Group, on November 28, 2024 and sell it today you would lose (110.50) from holding GEN Restaurant Group, or give up 16.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nextplat Corp vs. GEN Restaurant Group,
Performance |
| Timeline |
| Nextplat Corp |
| GEN Restaurant Group, |
Nextplat Corp and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and GEN Restaurant
The main advantage of trading using opposite Nextplat Corp and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
| GEN Restaurant vs. Paranovus Entertainment Technology | GEN Restaurant vs. Delek Drilling | GEN Restaurant vs. Seadrill Limited | GEN Restaurant vs. Playtech plc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |