Correlation Between Infrared Cameras and Nextplat Corp

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

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

Diversification Opportunities for Infrared Cameras and Nextplat Corp

0.25

Correlation Coefficient

Infrared Cameras  Nextplat Corp

Modest diversification

The 3 months correlation between Infrared and Nextplat is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Infrared Cameras Holdings and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp and Infrared Cameras 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 Infrared Cameras Holdings are associated (or correlated) with Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of Infrared Cameras i.e., Infrared Cameras and Nextplat Corp go up and down completely randomly.

Pair Corralation between Infrared Cameras and Nextplat Corp

Given the investment horizon of 90 days Infrared Cameras Holdings is expected to generate 2.99 times more return on investment than Nextplat Corp. However, Infrared Cameras is 2.99 times more volatile than Nextplat Corp. It trades about 0.06 of its potential returns per unit of risk. Nextplat Corp is currently generating about 0.02 per unit of risk. If you would invest  68.00  in Infrared Cameras Holdings on September 2, 2025 and sell it today you would lose (3.90) from holding Infrared Cameras Holdings or give up 5.74% of portfolio value over 90 days.

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

Infrared Cameras Holdings  vs.  Nextplat Corp

Infrared Cameras Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Infrared Cameras Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Infrared Cameras demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Nextplat Corp

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Nextplat Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Nextplat Corp may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Infrared Cameras and Nextplat Corp

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

The idea behind Infrared Cameras Holdings and Nextplat Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.