Correlation Between Amentum Holdings and Flexible Solutions
Can any of the company-specific risk be diversified away by investing in both Amentum Holdings and Flexible Solutions 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 Amentum Holdings and Flexible Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amentum Holdings and Flexible Solutions International, you can compare the effects of market volatilities on Amentum Holdings and Flexible Solutions 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 Amentum Holdings with a short position of Flexible Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amentum Holdings and Flexible Solutions.
Diversification Opportunities for Amentum Holdings and Flexible Solutions
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amentum and Flexible is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amentum Holdings and Flexible Solutions Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Solutions and Amentum Holdings 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 Amentum Holdings are associated (or correlated) with Flexible Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Solutions has no effect on the direction of Amentum Holdings i.e., Amentum Holdings and Flexible Solutions go up and down completely randomly.
Pair Corralation between Amentum Holdings and Flexible Solutions
Given the investment horizon of 90 days Amentum Holdings is expected to under-perform the Flexible Solutions. In addition to that, Amentum Holdings is 1.09 times more volatile than Flexible Solutions International. It trades about -0.29 of its total potential returns per unit of risk. Flexible Solutions International is currently generating about -0.12 per unit of volatility. If you would invest 437.00 in Flexible Solutions International on September 12, 2024 and sell it today you would lose (52.00) from holding Flexible Solutions International or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amentum Holdings vs. Flexible Solutions Internation
Performance |
| Timeline |
| Amentum Holdings |
| Flexible Solutions |
Amentum Holdings and Flexible Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amentum Holdings and Flexible Solutions
The main advantage of trading using opposite Amentum Holdings and Flexible Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amentum Holdings position performs unexpectedly, Flexible Solutions 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 Flexible Solutions will offset losses from the drop in Flexible Solutions' long position.| Amentum Holdings vs. Flexible Solutions International | Amentum Holdings vs. Olympic Steel | Amentum Holdings vs. Harmony Gold Mining | Amentum Holdings vs. National Beverage Corp |
| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |