Correlation Between Loaded Lions and NXT

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

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

Diversification Opportunities for Loaded Lions and NXT

-0.39

Correlation Coefficient

Loaded Lions  NXT

Very good diversification

The 3 months correlation between Loaded and NXT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Loaded Lions and NXT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXT and Loaded Lions 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 Loaded Lions are associated (or correlated) with NXT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXT has no effect on the direction of Loaded Lions i.e., Loaded Lions and NXT go up and down completely randomly.

Pair Corralation between Loaded Lions and NXT

Assuming the 90 days trading horizon Loaded Lions is expected to generate 59.97 times more return on investment than NXT. However, Loaded Lions is 59.97 times more volatile than NXT. It trades about 0.12 of its potential returns per unit of risk. NXT is currently generating about -0.1 per unit of risk. If you would invest  0.00  in Loaded Lions on July 20, 2025 and sell it today you would earn a total of  1.10  from holding Loaded Lions or generate 9.223372036854776E16% return on investment over 90 days.

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

Loaded Lions  vs.  NXT

Loaded Lions

Risk-Adjusted Performance

Fair

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

NXT

Risk-Adjusted Performance

Weakest

Over the last 90 days NXT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for NXT shareholders.

Pair Trading with Loaded Lions and NXT

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

The idea behind Loaded Lions and NXT 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.