Correlation Between Nextplat Corp and Maplebear

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

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

Diversification Opportunities for Nextplat Corp and Maplebear

0.64

Correlation Coefficient

Nextplat Corp  Maplebear

Poor diversification

The 3 months correlation between Nextplat and Maplebear is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Nextplat Corp 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 Nextplat Corp are associated (or correlated) with Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Maplebear go up and down completely randomly.

Pair Corralation between Nextplat Corp and Maplebear

Given the investment horizon of 90 days Nextplat Corp is expected to generate 1.82 times more return on investment than Maplebear. However, Nextplat Corp is 1.82 times more volatile than Maplebear. It trades about 0.17 of its potential returns per unit of risk. Maplebear is currently generating about 0.12 per unit of risk. If you would invest  58.00  in Nextplat Corp on April 25, 2025 and sell it today you would earn a total of  32.00  from holding Nextplat Corp or generate 55.17% return on investment over 90 days.

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

Nextplat Corp  vs.  Maplebear

Nextplat Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nextplat Corp are ranked lower than 13 (%) 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.

Maplebear

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nextplat Corp and Maplebear

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

The idea behind Nextplat Corp and Maplebear 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.