Correlation Between NextPlat Corp and Workiva
Can any of the company-specific risk be diversified away by investing in both NextPlat Corp and Workiva 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 Workiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextPlat Corp and Workiva, you can compare the effects of market volatilities on NextPlat Corp and Workiva 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 Workiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextPlat Corp and Workiva.
Diversification Opportunities for NextPlat Corp and Workiva
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NextPlat and Workiva is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding NextPlat Corp and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva 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 Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of NextPlat Corp i.e., NextPlat Corp and Workiva go up and down completely randomly.
Pair Corralation between NextPlat Corp and Workiva
Assuming the 90 days horizon NextPlat Corp is expected to under-perform the Workiva. In addition to that, NextPlat Corp is 2.57 times more volatile than Workiva. It trades about -0.03 of its total potential returns per unit of risk. Workiva is currently generating about 0.38 per unit of volatility. If you would invest 8,051 in Workiva on August 31, 2024 and sell it today you would earn a total of 1,634 from holding Workiva or generate 20.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
NextPlat Corp vs. Workiva
Performance |
| Timeline |
| NextPlat Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Workiva |
NextPlat Corp and Workiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextPlat Corp and Workiva
The main advantage of trading using opposite NextPlat Corp and Workiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextPlat Corp position performs unexpectedly, Workiva 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 Workiva will offset losses from the drop in Workiva's long position.| NextPlat Corp vs. Nextplat Corp | NextPlat Corp vs. HUMANA INC | NextPlat Corp vs. Aquagold International | NextPlat Corp vs. Barloworld Ltd ADR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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