Correlation Between 48126BAA1 and Nextplat Corp
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By analyzing existing cross correlation between JP Morgan Chase and Nextplat Corp, you can compare the effects of market volatilities on 48126BAA1 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 48126BAA1 with a short position of Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 48126BAA1 and Nextplat Corp.
Diversification Opportunities for 48126BAA1 and Nextplat Corp
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 48126BAA1 and Nextplat is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Chase and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and 48126BAA1 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 JP Morgan Chase 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 48126BAA1 i.e., 48126BAA1 and Nextplat Corp go up and down completely randomly.
Pair Corralation between 48126BAA1 and Nextplat Corp
Assuming the 90 days trading horizon JP Morgan Chase is expected to generate 0.13 times more return on investment than Nextplat Corp. However, JP Morgan Chase is 7.79 times less risky than Nextplat Corp. It trades about 0.02 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.18 per unit of risk. If you would invest 10,181 in JP Morgan Chase on September 1, 2024 and sell it today you would earn a total of 23.00 from holding JP Morgan Chase or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JP Morgan Chase vs. Nextplat Corp
Performance |
| Timeline |
| JP Morgan Chase |
| Nextplat Corp |
48126BAA1 and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 48126BAA1 and Nextplat Corp
The main advantage of trading using opposite 48126BAA1 and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 48126BAA1 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.| 48126BAA1 vs. Iridium Communications | 48126BAA1 vs. National CineMedia | 48126BAA1 vs. Jeld Wen Holding | 48126BAA1 vs. Avient Corp |
| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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