Correlation Between Nextplat Corp and Usio

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

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

Diversification Opportunities for Nextplat Corp and Usio

-0.1

Correlation Coefficient

Nextplat Corp  Usio

Good diversification

The 3 months correlation between Nextplat and Usio is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Usio go up and down completely randomly.

Pair Corralation between Nextplat Corp and Usio

Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Usio. In addition to that, Nextplat Corp is 1.76 times more volatile than Usio Inc. It trades about -0.06 of its total potential returns per unit of risk. Usio Inc is currently generating about 0.02 per unit of volatility. If you would invest  141.00  in Usio Inc on March 1, 2025 and sell it today you would earn a total of  0.00  from holding Usio Inc or generate 0.0% return on investment over 90 days.

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

Nextplat Corp  vs.  Usio Inc

Nextplat Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nextplat Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in June 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Usio Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Usio Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Usio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nextplat Corp and Usio

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

The idea behind Nextplat Corp and Usio Inc 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.