Correlation Between NPXS and EXPAND

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

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

Diversification Opportunities for NPXS and EXPAND

0.0

Correlation Coefficient

NPXS  EXPAND

Pay attention - limited upside

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

Pair Corralation between NPXS and EXPAND

If you would invest  0.01  in EXPAND on July 10, 2025 and sell it today you would earn a total of  0.00  from holding EXPAND or generate 55.93% return on investment over 90 days.

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

NPXS  vs.  EXPAND

NPXS

Risk-Adjusted Performance

Weakest

Over the last 90 days NPXS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, NPXS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

EXPAND

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EXPAND are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, EXPAND sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NPXS and EXPAND

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

The idea behind NPXS and EXPAND 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.

Check out your portfolio center.

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.