Correlation Between Nextplat Corp and Western Asset
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Western Asset Investment, you can compare the effects of market volatilities on Nextplat Corp and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Western Asset.
Diversification Opportunities for Nextplat Corp and Western Asset
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nextplat and Western is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Western Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Investment 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Investment has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Western Asset go up and down completely randomly.
Pair Corralation between Nextplat Corp and Western Asset
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Western Asset. In addition to that, Nextplat Corp is 6.08 times more volatile than Western Asset Investment. It trades about 0.0 of its total potential returns per unit of risk. Western Asset Investment is currently generating about 0.03 per unit of volatility. If you would invest 1,503 in Western Asset Investment on September 2, 2024 and sell it today you would earn a total of 172.00 from holding Western Asset Investment or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Western Asset Investment
Performance |
| Timeline |
| Nextplat Corp |
| Western Asset Investment |
Nextplat Corp and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Western Asset
The main advantage of trading using opposite Nextplat Corp and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
| Western Asset vs. Visa Class A | Western Asset vs. Diamond Hill Investment | Western Asset vs. Distoken Acquisition | Western Asset vs. Associated Capital Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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