Correlation Between NUCOR and Nextplat Corp
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By analyzing existing cross correlation between NUCOR P 395 and Nextplat Corp, you can compare the effects of market volatilities on NUCOR 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 NUCOR with a short position of Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NUCOR and Nextplat Corp.
Diversification Opportunities for NUCOR and Nextplat Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NUCOR and Nextplat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding NUCOR P 395 and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and NUCOR 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 NUCOR P 395 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 NUCOR i.e., NUCOR and Nextplat Corp go up and down completely randomly.
Pair Corralation between NUCOR and Nextplat Corp
Assuming the 90 days trading horizon NUCOR P 395 is expected to generate 0.03 times more return on investment than Nextplat Corp. However, NUCOR P 395 is 30.42 times less risky than Nextplat Corp. It trades about -0.06 of its potential returns per unit of risk. Nextplat Corp is currently generating about -0.08 per unit of risk. If you would invest 9,820 in NUCOR P 395 on August 28, 2024 and sell it today you would lose (31.00) from holding NUCOR P 395 or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NUCOR P 395 vs. Nextplat Corp
Performance |
| Timeline |
| NUCOR P 5 |
| Nextplat Corp |
NUCOR and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NUCOR and Nextplat Corp
The main advantage of trading using opposite NUCOR and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NUCOR 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.| NUCOR vs. Nextplat Corp | NUCOR vs. Zedge Inc | NUCOR vs. Franklin Wireless Corp | NUCOR vs. Bausch Lomb Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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