Correlation Between NXT Energy and FMTO New
Can any of the company-specific risk be diversified away by investing in both NXT Energy and FMTO New 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 NXT Energy and FMTO New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXT Energy Solutions and FMTO New, you can compare the effects of market volatilities on NXT Energy and FMTO New 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 NXT Energy with a short position of FMTO New. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXT Energy and FMTO New.
Diversification Opportunities for NXT Energy and FMTO New
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NXT and FMTO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NXT Energy Solutions and FMTO New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMTO New and NXT Energy 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 NXT Energy Solutions are associated (or correlated) with FMTO New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMTO New has no effect on the direction of NXT Energy i.e., NXT Energy and FMTO New go up and down completely randomly.
Pair Corralation between NXT Energy and FMTO New
If you would invest 353.00 in FMTO New on October 10, 2025 and sell it today you would earn a total of 0.00 from holding FMTO New or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
NXT Energy Solutions vs. FMTO New
Performance |
| Timeline |
| NXT Energy Solutions |
| FMTO New |
Risk-Adjusted Performance
Weakest
Weak | Strong |
NXT Energy and FMTO New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXT Energy and FMTO New
The main advantage of trading using opposite NXT Energy and FMTO New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXT Energy position performs unexpectedly, FMTO New 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 FMTO New will offset losses from the drop in FMTO New's long position.| NXT Energy vs. Petrofac | NXT Energy vs. Koil Energy Solutions | NXT Energy vs. Jericho Oil Corp | NXT Energy vs. Eco Oil Gas |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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