Correlation Between Cleantech Power and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and Nextplat Corp 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 Cleantech Power and Nextplat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and Nextplat Corp, you can compare the effects of market volatilities on Cleantech Power and Nextplat Corp 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 Cleantech Power with a short position of Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Nextplat Corp.
Diversification Opportunities for Cleantech Power and Nextplat Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Nextplat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and Cleantech Power 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 Cleantech Power Corp are associated (or correlated) with Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of Cleantech Power i.e., Cleantech Power and Nextplat Corp go up and down completely randomly.
Pair Corralation between Cleantech Power and Nextplat Corp
Assuming the 90 days horizon Cleantech Power Corp is expected to generate 20.58 times more return on investment than Nextplat Corp. However, Cleantech Power is 20.58 times more volatile than Nextplat Corp. It trades about 0.11 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.04 per unit of risk. If you would invest 1.00 in Cleantech Power Corp on August 31, 2024 and sell it today you would lose (0.41) from holding Cleantech Power Corp or give up 41.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Cleantech Power Corp vs. Nextplat Corp
Performance |
| Timeline |
| Cleantech Power Corp |
| Nextplat Corp |
Cleantech Power and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Nextplat Corp
The main advantage of trading using opposite Cleantech Power and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp's long position.| Cleantech Power vs. Legacy Education | Cleantech Power vs. Apple Inc | Cleantech Power vs. NVIDIA | Cleantech Power vs. Microsoft |
| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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