Correlation Between Nextplat Corp and Maplebear Common

Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and Maplebear Common 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 Maplebear Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nextplat Corp and Maplebear Common Stock, you can compare the effects of market volatilities on Nextplat Corp and Maplebear Common 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 Maplebear Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Maplebear Common.

Diversification Opportunities for Nextplat Corp and Maplebear Common

-0.07

Correlation Coefficient

Nextplat Corp  Maplebear Common

Good diversification

The 3 months correlation between Nextplat and Maplebear is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Maplebear Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear Common Stock 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 Maplebear Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear Common Stock has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Maplebear Common go up and down completely randomly.

Pair Corralation between Nextplat Corp and Maplebear Common

Given the investment horizon of 90 days Nextplat Corp is expected to generate 4.02 times more return on investment than Maplebear Common. However, Nextplat Corp is 4.02 times more volatile than Maplebear Common Stock. It trades about 0.08 of its potential returns per unit of risk. Maplebear Common Stock is currently generating about 0.0 per unit of risk. If you would invest  79.00  in Nextplat Corp on November 28, 2024 and sell it today you would earn a total of  17.54  from holding Nextplat Corp or generate 22.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nextplat Corp  vs.  Maplebear Common Stock

Nextplat Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nextplat Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Nextplat Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Maplebear Common Stock

Risk-Adjusted Performance

OK

Over the last 90 days Maplebear Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maplebear Common is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Nextplat Corp and Maplebear Common

The main advantage of trading using opposite Nextplat Corp and Maplebear Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, Maplebear Common 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 Maplebear Common will offset losses from the drop in Maplebear Common's long position.

The idea behind Nextplat Corp and Maplebear Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.