Correlation Between NextPlat Corp and Maptelligent
Can any of the company-specific risk be diversified away by investing in both NextPlat Corp and Maptelligent 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 Maptelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextPlat Corp and Maptelligent, you can compare the effects of market volatilities on NextPlat Corp and Maptelligent 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 Maptelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextPlat Corp and Maptelligent.
Diversification Opportunities for NextPlat Corp and Maptelligent
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NextPlat and Maptelligent is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NextPlat Corp and Maptelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maptelligent 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 Maptelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maptelligent has no effect on the direction of NextPlat Corp i.e., NextPlat Corp and Maptelligent go up and down completely randomly.
Pair Corralation between NextPlat Corp and Maptelligent
Assuming the 90 days horizon NextPlat Corp is expected to generate 1.42 times less return on investment than Maptelligent. But when comparing it to its historical volatility, NextPlat Corp is 1.53 times less risky than Maptelligent. It trades about 0.06 of its potential returns per unit of risk. Maptelligent is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Maptelligent on September 27, 2024 and sell it today you would lose (0.03) from holding Maptelligent or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 63.64% |
| Values | Daily Returns |
NextPlat Corp vs. Maptelligent
Performance |
| Timeline |
| NextPlat Corp |
| Maptelligent |
NextPlat Corp and Maptelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextPlat Corp and Maptelligent
The main advantage of trading using opposite NextPlat Corp and Maptelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextPlat Corp position performs unexpectedly, Maptelligent 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 Maptelligent will offset losses from the drop in Maptelligent's long position.| NextPlat Corp vs. Dubber Limited | NextPlat Corp vs. Advanced Health Intelligence | NextPlat Corp vs. Danavation Technologies Corp | NextPlat Corp vs. BASE Inc |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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