Correlation Between LXP Industrial and Next Technology

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

By analyzing existing cross correlation between LXP Industrial Trust and Next Technology Holding, you can compare the effects of market volatilities on LXP Industrial and Next Technology 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 LXP Industrial with a short position of Next Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of LXP Industrial and Next Technology.

Diversification Opportunities for LXP Industrial and Next Technology

-0.52

Correlation Coefficient

LXP Industrial  Next Technology

Excellent diversification

The 3 months correlation between LXP and Next is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding LXP Industrial Trust and Next Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Technology Holding and LXP Industrial 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 LXP Industrial Trust are associated (or correlated) with Next Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Technology Holding has no effect on the direction of LXP Industrial i.e., LXP Industrial and Next Technology go up and down completely randomly.

Pair Corralation between LXP Industrial and Next Technology

Considering the 90-day investment horizon LXP Industrial Trust is expected to generate 0.2 times more return on investment than Next Technology. However, LXP Industrial Trust is 5.0 times less risky than Next Technology. It trades about 0.11 of its potential returns per unit of risk. Next Technology Holding is currently generating about -0.23 per unit of risk. If you would invest  4,526  in LXP Industrial Trust on September 16, 2025 and sell it today you would earn a total of  472.00  from holding LXP Industrial Trust or generate 10.43% return on investment over 90 days.

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

LXP Industrial Trust  vs.  Next Technology Holding

LXP Industrial Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in LXP Industrial Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, LXP Industrial may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Next Technology Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Next Technology Holding 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 basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with LXP Industrial and Next Technology

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

The idea behind LXP Industrial Trust and Next Technology Holding 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.