Correlation Between Next Technology and ViewcastCom

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

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

Diversification Opportunities for Next Technology and ViewcastCom

0.0

Correlation Coefficient

Next Technology  ViewcastCom

Pay attention - limited upside

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

Pair Corralation between Next Technology and ViewcastCom

If you would invest  210.00  in Next Technology Holding on May 16, 2025 and sell it today you would lose (66.00) from holding Next Technology Holding or give up 31.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Next Technology Holding  vs.  ViewcastCom

Next Technology Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Next Technology Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Next Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

ViewcastCom

Risk-Adjusted Performance

Weakest

Over the last 90 days ViewcastCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ViewcastCom is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Next Technology and ViewcastCom

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

The idea behind Next Technology Holding and ViewcastCom 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.