Correlation Between International Money and Nextplay Technologies

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

By analyzing existing cross correlation between International Money Express and Nextplay Technologies, you can compare the effects of market volatilities on International Money and Nextplay Technologies 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 International Money with a short position of Nextplay Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Money and Nextplay Technologies.

Diversification Opportunities for International Money and Nextplay Technologies

0.09

Correlation Coefficient

International Money  Nextplay Technologies

Significant diversification

The 3 months correlation between International and Nextplay is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding International Money Express and Nextplay Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplay Technologies and International Money 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 International Money Express are associated (or correlated) with Nextplay Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplay Technologies has no effect on the direction of International Money i.e., International Money and Nextplay Technologies go up and down completely randomly.

Pair Corralation between International Money and Nextplay Technologies

If you would invest  1,813  in International Money Express on September 1, 2024 and sell it today you would earn a total of  294.00  from holding International Money Express or generate 16.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

International Money Express  vs.  Nextplay Technologies

International Money

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in International Money Express are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, International Money demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Nextplay Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nextplay Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Nextplay Technologies is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with International Money and Nextplay Technologies

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

The idea behind International Money Express and Nextplay Technologies 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.