Correlation Between PIVX and NXT

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

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

Diversification Opportunities for PIVX and NXT

0.0

Correlation Coefficient

PIVX  NXT

Pay attention - limited upside

The 3 months correlation between PIVX and NXT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PIVX and NXT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXT and PIVX 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 PIVX 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 PIVX i.e., PIVX and NXT go up and down completely randomly.

Pair Corralation between PIVX and NXT

Assuming the 90 days trading horizon PIVX is expected to generate 4.08 times more return on investment than NXT. However, PIVX is 4.08 times more volatile than NXT. It trades about 0.06 of its potential returns per unit of risk. NXT is currently generating about -0.1 per unit of risk. If you would invest  16.00  in PIVX on July 21, 2025 and sell it today you would earn a total of  2.00  from holding PIVX or generate 12.5% return on investment over 90 days.

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

PIVX  vs.  NXT

PIVX

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in PIVX are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, PIVX 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 latest unsteady performance, the Crypto's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for NXT shareholders.

Pair Trading with PIVX and NXT

The main advantage of trading using opposite PIVX and NXT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIVX 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 PIVX 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.