Correlation Between Nextplat Corp and 26442CBJ2
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By analyzing existing cross correlation between Nextplat Corp and DUK 495 15 JAN 33, you can compare the effects of market volatilities on Nextplat Corp and 26442CBJ2 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 26442CBJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and 26442CBJ2.
Diversification Opportunities for Nextplat Corp and 26442CBJ2
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nextplat and 26442CBJ2 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and DUK 495 15 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 495 15 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 26442CBJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 495 15 has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and 26442CBJ2 go up and down completely randomly.
Pair Corralation between Nextplat Corp and 26442CBJ2
Given the investment horizon of 90 days Nextplat Corp is expected to generate 7.03 times more return on investment than 26442CBJ2. However, Nextplat Corp is 7.03 times more volatile than DUK 495 15 JAN 33. It trades about 0.01 of its potential returns per unit of risk. DUK 495 15 JAN 33 is currently generating about 0.0 per unit of risk. If you would invest 158.00 in Nextplat Corp on August 27, 2024 and sell it today you would lose (64.00) from holding Nextplat Corp or give up 40.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.34% |
| Values | Daily Returns |
Nextplat Corp vs. DUK 495 15 JAN 33
Performance |
| Timeline |
| Nextplat Corp |
| DUK 495 15 |
Nextplat Corp and 26442CBJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and 26442CBJ2
The main advantage of trading using opposite Nextplat Corp and 26442CBJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, 26442CBJ2 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 26442CBJ2 will offset losses from the drop in 26442CBJ2's long position.The idea behind Nextplat Corp and DUK 495 15 JAN 33 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 26442CBJ2 vs. Rumble Inc | 26442CBJ2 vs. Nextplat Corp | 26442CBJ2 vs. Omni Health | 26442CBJ2 vs. NetSol Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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