Correlation Between Nextplat Corp and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Nextplat Corp and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Dow Jones.
Diversification Opportunities for Nextplat Corp and Dow Jones
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nextplat and Dow is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Dow Jones go up and down completely randomly.
Pair Corralation between Nextplat Corp and Dow Jones
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Dow Jones. In addition to that, Nextplat Corp is 3.48 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.05 per unit of volatility. If you would invest 4,200,176 in Dow Jones Industrial on March 31, 2025 and sell it today you would earn a total of 181,751 from holding Dow Jones Industrial or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Nextplat Corp and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nextplat Corp
Pair trading matchups for Nextplat Corp
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nextplat Corp and Dow Jones
The main advantage of trading using opposite Nextplat Corp and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Nextplat Corp vs. Sphere 3D Corp | Nextplat Corp vs. Society Pass | Nextplat Corp vs. Marin Software | Nextplat Corp vs. Auddia Inc |
| Dow Jones vs. Steven Madden | Dow Jones vs. Titan America SA | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. United Guardian |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |