Correlation Between NanoFlex Power and MPhase Technologies

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

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

Diversification Opportunities for NanoFlex Power and MPhase Technologies

0.0

Correlation Coefficient

NanoFlex Power  MPhase Technologies

Pay attention - limited upside

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

Pair Corralation between NanoFlex Power and MPhase Technologies

Given the investment horizon of 90 days NanoFlex Power is expected to generate 17.32 times less return on investment than MPhase Technologies. But when comparing it to its historical volatility, NanoFlex Power Corp is 3.69 times less risky than MPhase Technologies. It trades about 0.04 of its potential returns per unit of risk. mPhase Technologies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.08  in mPhase Technologies on August 4, 2025 and sell it today you would lose (0.06) from holding mPhase Technologies or give up 75.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

NanoFlex Power Corp  vs.  mPhase Technologies

NanoFlex Power Corp

Risk-Adjusted Performance

Weakest

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

mPhase Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in mPhase Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, MPhase Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NanoFlex Power and MPhase Technologies

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

The idea behind NanoFlex Power Corp and mPhase Technologies 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.