Correlation Between NPXS and BLZ

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

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

Diversification Opportunities for NPXS and BLZ

0.0

Correlation Coefficient

NPXS  BLZ

Pay attention - limited upside

The 3 months correlation between NPXS and BLZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NPXS and BLZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLZ and NPXS 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 NPXS are associated (or correlated) with BLZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLZ has no effect on the direction of NPXS i.e., NPXS and BLZ go up and down completely randomly.

Pair Corralation between NPXS and BLZ

If you would invest  3.64  in BLZ on May 6, 2025 and sell it today you would lose (0.06) from holding BLZ or give up 1.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NPXS  vs.  BLZ

NPXS

Risk-Adjusted Performance

Very Weak

Over the last 90 days NPXS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, NPXS is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BLZ

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, BLZ is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with NPXS and BLZ

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

The idea behind NPXS and BLZ 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.