Correlation Between Fluent and Nextplat Corp

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

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

Diversification Opportunities for Fluent and Nextplat Corp

0.01

Correlation Coefficient

Fluent  Nextplat Corp

Significant diversification

The 3 months correlation between Fluent and Nextplat is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and Nextplat Corp go up and down completely randomly.

Pair Corralation between Fluent and Nextplat Corp

Given the investment horizon of 90 days Fluent is expected to generate 14.97 times less return on investment than Nextplat Corp. In addition to that, Fluent is 1.03 times more volatile than Nextplat Corp. It trades about 0.01 of its total potential returns per unit of risk. Nextplat Corp is currently generating about 0.11 per unit of volatility. If you would invest  53.00  in Nextplat Corp on May 4, 2025 and sell it today you would earn a total of  16.00  from holding Nextplat Corp or generate 30.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Fluent Inc  vs.  Nextplat Corp

Fluent Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fluent is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Nextplat Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nextplat Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Nextplat Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fluent and Nextplat Corp

The main advantage of trading using opposite Fluent and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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 Fluent Inc 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.