Correlation Between NextPlat Corp and AppYea

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

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

Diversification Opportunities for NextPlat Corp and AppYea

0.12

Correlation Coefficient

NextPlat Corp  AppYea

Average diversification

The 3 months correlation between NextPlat and AppYea is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NextPlat Corp and AppYea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppYea Inc 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 AppYea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppYea Inc has no effect on the direction of NextPlat Corp i.e., NextPlat Corp and AppYea go up and down completely randomly.

Pair Corralation between NextPlat Corp and AppYea

Assuming the 90 days horizon NextPlat Corp is expected to generate 7.1 times more return on investment than AppYea. However, NextPlat Corp is 7.1 times more volatile than AppYea Inc. It trades about 0.01 of its potential returns per unit of risk. AppYea Inc is currently generating about -0.14 per unit of risk. If you would invest  20.00  in NextPlat Corp on September 24, 2024 and sell it today you would lose (10.00) from holding NextPlat Corp or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	61.9%
Values	Daily Returns

NextPlat Corp  vs.  AppYea Inc

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.

AppYea Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with NextPlat Corp and AppYea

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

The idea behind NextPlat Corp and AppYea Inc 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 Managers module to screen money managers from public funds and ETFs managed around the world.