Correlation Between NewFlex Technology and Clean Science
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and Clean Science 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 NewFlex Technology and Clean Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Clean Science co, you can compare the effects of market volatilities on NewFlex Technology and Clean Science 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 NewFlex Technology with a short position of Clean Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Clean Science.
Diversification Opportunities for NewFlex Technology and Clean Science
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NewFlex and Clean is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and Clean Science co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Science co and NewFlex Technology 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 NewFlex Technology Co are associated (or correlated) with Clean Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Science co has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and Clean Science go up and down completely randomly.
Pair Corralation between NewFlex Technology and Clean Science
Assuming the 90 days trading horizon NewFlex Technology Co is expected to generate 1.77 times more return on investment than Clean Science. However, NewFlex Technology is 1.77 times more volatile than Clean Science co. It trades about 0.0 of its potential returns per unit of risk. Clean Science co is currently generating about -0.05 per unit of risk. If you would invest 707,000 in NewFlex Technology Co on September 3, 2024 and sell it today you would lose (240,000) from holding NewFlex Technology Co or give up 33.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Clean Science co
Performance |
| Timeline |
| NewFlex Technology |
| Clean Science co |
NewFlex Technology and Clean Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Clean Science
The main advantage of trading using opposite NewFlex Technology and Clean Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, Clean Science 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 Clean Science will offset losses from the drop in Clean Science's long position.| NewFlex Technology vs. Dongsin Engineering Construction | NewFlex Technology vs. Doosan Fuel Cell | NewFlex Technology vs. Daishin Balance 1 | NewFlex Technology vs. Total Soft Bank |
| Clean Science vs. Daol Investment Securities | Clean Science vs. SEOJEON ELECTRIC MACHINERY | Clean Science vs. Hanwha InvestmentSecurities Co | Clean Science vs. SV 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |