Correlation Between AAC Clyde and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both AAC Clyde and Flexion Mobile 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 AAC Clyde and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Clyde Space and Flexion Mobile PLC, you can compare the effects of market volatilities on AAC Clyde and Flexion Mobile 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 AAC Clyde with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and Flexion Mobile.
Diversification Opportunities for AAC Clyde and Flexion Mobile
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAC and Flexion is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and AAC Clyde 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 AAC Clyde Space are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of AAC Clyde i.e., AAC Clyde and Flexion Mobile go up and down completely randomly.
Pair Corralation between AAC Clyde and Flexion Mobile
Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 14.34 times more return on investment than Flexion Mobile. However, AAC Clyde is 14.34 times more volatile than Flexion Mobile PLC. It trades about 0.04 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.03 per unit of risk. If you would invest 154.00 in AAC Clyde Space on August 24, 2024 and sell it today you would earn a total of 4,451 from holding AAC Clyde Space or generate 2890.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC Clyde Space vs. Flexion Mobile PLC
Performance |
| Timeline |
| AAC Clyde Space |
| Flexion Mobile PLC |
AAC Clyde and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Clyde and Flexion Mobile
The main advantage of trading using opposite AAC Clyde and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Clyde position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
| Flexion Mobile vs. Stillfront Group AB | Flexion Mobile vs. iZafe Group AB | Flexion Mobile vs. KABE Group AB | Flexion Mobile vs. IAR Systems Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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