Correlation Between XMReality and NextPlat Corp

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

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

Diversification Opportunities for XMReality and NextPlat Corp

0.0

Correlation Coefficient

XMReality  NextPlat Corp

Pay attention - limited upside

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

Pair Corralation between XMReality and NextPlat Corp

If you would invest  0.91  in XMReality AB on September 25, 2024 and sell it today you would earn a total of  0.00  from holding XMReality AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	79.69%
Values	Daily Returns

XMReality AB  vs.  NextPlat Corp

XMReality AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XMReality AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, XMReality is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

NextPlat Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NextPlat Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with XMReality and NextPlat Corp

The main advantage of trading using opposite XMReality and NextPlat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XMReality 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 XMReality AB 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.