Correlation Between Adventure Box and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both Adventure Box 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 Adventure Box and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adventure Box Technology and Flexion Mobile PLC, you can compare the effects of market volatilities on Adventure Box 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 Adventure Box with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adventure Box and Flexion Mobile.
Diversification Opportunities for Adventure Box and Flexion Mobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adventure and Flexion is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Adventure Box Technology 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 Adventure Box 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 Adventure Box Technology 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 Adventure Box i.e., Adventure Box and Flexion Mobile go up and down completely randomly.
Pair Corralation between Adventure Box and Flexion Mobile
Assuming the 90 days trading horizon Adventure Box Technology is expected to generate 3.46 times more return on investment than Flexion Mobile. However, Adventure Box is 3.46 times more volatile than Flexion Mobile PLC. It trades about -0.02 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.09 per unit of risk. If you would invest 26.00 in Adventure Box Technology on November 3, 2024 and sell it today you would lose (10.00) from holding Adventure Box Technology or give up 38.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adventure Box Technology vs. Flexion Mobile PLC
Performance |
| Timeline |
| Adventure Box Technology |
| Flexion Mobile PLC |
Adventure Box and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adventure Box and Flexion Mobile
The main advantage of trading using opposite Adventure Box and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adventure Box 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.| Adventure Box vs. Flexion Mobile PLC | Adventure Box vs. Stillfront Group AB | Adventure Box vs. iZafe Group AB |
| Flexion Mobile vs. Media and Games | Flexion Mobile vs. Corline Biomedical AB | Flexion Mobile vs. 24SevenOffice Scandinavia AB | Flexion Mobile vs. Zenicor Medical Systems |
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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