Correlation Between Rayont and NextPlat Corp

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

By analyzing existing cross correlation between Rayont Inc and NextPlat Corp, you can compare the effects of market volatilities on Rayont 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 Rayont with a short position of NextPlat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rayont and NextPlat Corp.

Diversification Opportunities for Rayont and NextPlat Corp

0.0

Correlation Coefficient

Rayont  NextPlat Corp

Pay attention - limited upside

The 3 months correlation between Rayont and NextPlat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rayont Inc and NextPlat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextPlat Corp and Rayont 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 Rayont Inc 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 Rayont i.e., Rayont and NextPlat Corp go up and down completely randomly.

Pair Corralation between Rayont and NextPlat Corp

If you would invest  9.90  in NextPlat Corp on December 30, 2024 and sell it today you would earn a total of  11.10  from holding NextPlat Corp or generate 112.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.32%
Values	Daily Returns

Rayont Inc  vs.  NextPlat Corp

Rayont Inc

Risk-Adjusted Performance

Very Weak

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

NextPlat Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NextPlat Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, NextPlat Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rayont and NextPlat Corp

The main advantage of trading using opposite Rayont and NextPlat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rayont 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.

The idea behind Rayont Inc and NextPlat Corp 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.