Correlation Between NextPlat Corp and CXApp
Can any of the company-specific risk be diversified away by investing in both NextPlat Corp and CXApp 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 CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextPlat Corp and CXApp Inc, you can compare the effects of market volatilities on NextPlat Corp and CXApp 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 CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextPlat Corp and CXApp.
Diversification Opportunities for NextPlat Corp and CXApp
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NextPlat and CXApp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NextPlat Corp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of NextPlat Corp i.e., NextPlat Corp and CXApp go up and down completely randomly.
Pair Corralation between NextPlat Corp and CXApp
Assuming the 90 days horizon NextPlat Corp is expected to generate 5.25 times more return on investment than CXApp. However, NextPlat Corp is 5.25 times more volatile than CXApp Inc. It trades about 0.09 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.08 per unit of risk. If you would invest 39.00 in NextPlat Corp on October 12, 2024 and sell it today you would lose (19.00) from holding NextPlat Corp or give up 48.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.82% |
| Values | Daily Returns |
NextPlat Corp vs. CXApp Inc
Performance |
| Timeline |
| NextPlat Corp |
| CXApp Inc |
NextPlat Corp and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextPlat Corp and CXApp
The main advantage of trading using opposite NextPlat Corp and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextPlat Corp position performs unexpectedly, CXApp 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 CXApp will offset losses from the drop in CXApp's long position.The idea behind NextPlat Corp and CXApp Inc 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.| CXApp vs. CDW Corp | CXApp vs. 51Talk Online Education | CXApp vs. Cheche Group Class | CXApp vs. Lincoln Educational Services |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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