Correlation Between Nextplat Corp and Semilux International

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

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

Diversification Opportunities for Nextplat Corp and Semilux International

0.55

Correlation Coefficient

Nextplat Corp  Semilux International

Very weak diversification

The 3 months correlation between Nextplat and Semilux is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International and Nextplat Corp 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 Nextplat Corp are associated (or correlated) with Semilux International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semilux International has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Semilux International go up and down completely randomly.

Pair Corralation between Nextplat Corp and Semilux International

Given the investment horizon of 90 days Nextplat Corp is expected to generate 0.68 times more return on investment than Semilux International. However, Nextplat Corp is 1.48 times less risky than Semilux International. It trades about 0.0 of its potential returns per unit of risk. Semilux International Ltd is currently generating about -0.02 per unit of risk. If you would invest  170.00  in Nextplat Corp on September 14, 2025 and sell it today you would lose (105.00) from holding Nextplat Corp or give up 61.76% of portfolio value over 90 days.

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

Nextplat Corp  vs.  Semilux International Ltd

Nextplat Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Nextplat Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Nextplat Corp is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Semilux International

Risk-Adjusted Performance

Weakest

Over the last 90 days Semilux International Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Nextplat Corp and Semilux International

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

The idea behind Nextplat Corp and Semilux International Ltd 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.