Correlation Between NextPlat Corp and Wirecard
Can any of the company-specific risk be diversified away by investing in both NextPlat Corp and Wirecard 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 Wirecard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextPlat Corp and Wirecard AG, you can compare the effects of market volatilities on NextPlat Corp and Wirecard 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 Wirecard. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextPlat Corp and Wirecard.
Diversification Opportunities for NextPlat Corp and Wirecard
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between NextPlat and Wirecard is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding NextPlat Corp and Wirecard AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wirecard AG 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 Wirecard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wirecard AG has no effect on the direction of NextPlat Corp i.e., NextPlat Corp and Wirecard go up and down completely randomly.
Pair Corralation between NextPlat Corp and Wirecard
If you would invest 20.00 in NextPlat Corp on September 23, 2024 and sell it today you would lose (10.00) from holding NextPlat Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
NextPlat Corp vs. Wirecard AG
Performance |
| Timeline |
| NextPlat Corp |
| Wirecard AG |
NextPlat Corp and Wirecard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextPlat Corp and Wirecard
The main advantage of trading using opposite NextPlat Corp and Wirecard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextPlat Corp position performs unexpectedly, Wirecard 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 Wirecard will offset losses from the drop in Wirecard'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 |
| Wirecard vs. NextPlat Corp | Wirecard vs. Liquid Avatar Technologies | Wirecard vs. Waldencast Acquisition Corp | Wirecard vs. CXApp Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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