Correlation Between Advanced Health and Nextplat Corp

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

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

Diversification Opportunities for Advanced Health and Nextplat Corp

-0.09

Correlation Coefficient

Advanced Health  Nextplat Corp

Good diversification

The 3 months correlation between Advanced and Nextplat is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and Advanced Health 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 Advanced Health Intelligence 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 Advanced Health i.e., Advanced Health and Nextplat Corp go up and down completely randomly.

Pair Corralation between Advanced Health and Nextplat Corp

Assuming the 90 days horizon Advanced Health is expected to generate 18.14 times less return on investment than Nextplat Corp. But when comparing it to its historical volatility, Advanced Health Intelligence is 1.99 times less risky than Nextplat Corp. It trades about 0.01 of its potential returns per unit of risk. Nextplat Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  60.00  in Nextplat Corp on May 18, 2025 and sell it today you would earn a total of  17.00  from holding Nextplat Corp or generate 28.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Advanced Health Intelligence  vs.  Nextplat Corp

Advanced Health Inte

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Advanced Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Nextplat Corp

Risk-Adjusted Performance

Fair

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 unfluctuating basic indicators, Nextplat Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Health and Nextplat Corp

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

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.