Correlation Between Internet Ultrasector and NexPoint Strategic

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

By analyzing existing cross correlation between Internet Ultrasector Profund and NexPoint Strategic Opportunities, you can compare the effects of market volatilities on Internet Ultrasector and NexPoint Strategic 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 Internet Ultrasector with a short position of NexPoint Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Ultrasector and NexPoint Strategic.

Diversification Opportunities for Internet Ultrasector and NexPoint Strategic

0.41

Correlation Coefficient

Internet Ultrasector  NexPoint Strategic

Very weak diversification

The 3 months correlation between Internet and NexPoint is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Internet Ultrasector Profund and NexPoint Strategic Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPoint Strategic and Internet Ultrasector 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 Internet Ultrasector Profund are associated (or correlated) with NexPoint Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPoint Strategic has no effect on the direction of Internet Ultrasector i.e., Internet Ultrasector and NexPoint Strategic go up and down completely randomly.

Pair Corralation between Internet Ultrasector and NexPoint Strategic

Assuming the 90 days horizon Internet Ultrasector Profund is expected to generate 0.6 times more return on investment than NexPoint Strategic. However, Internet Ultrasector Profund is 1.67 times less risky than NexPoint Strategic. It trades about -0.02 of its potential returns per unit of risk. NexPoint Strategic Opportunities is currently generating about -0.11 per unit of risk. If you would invest  6,162  in Internet Ultrasector Profund on August 21, 2025 and sell it today you would lose (184.00) from holding Internet Ultrasector Profund or give up 2.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Internet Ultrasector Profund  vs.  NexPoint Strategic Opportuniti

Internet Ultrasector

Risk-Adjusted Performance

Weakest

Over the last 90 days Internet Ultrasector Profund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Internet Ultrasector is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

NexPoint Strategic

Risk-Adjusted Performance

Weakest

Over the last 90 days NexPoint Strategic Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Internet Ultrasector and NexPoint Strategic

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

The idea behind Internet Ultrasector Profund and NexPoint Strategic Opportunities 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .