Correlation Between AZN Capital and FlexShopper
Can any of the company-specific risk be diversified away by investing in both AZN Capital and FlexShopper 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 AZN Capital and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AZN Capital Corp and FlexShopper, you can compare the effects of market volatilities on AZN Capital and FlexShopper 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 AZN Capital with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of AZN Capital and FlexShopper.
Diversification Opportunities for AZN Capital and FlexShopper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AZN and FlexShopper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AZN Capital Corp and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and AZN Capital 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 AZN Capital Corp are associated (or correlated) with FlexShopper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShopper has no effect on the direction of AZN Capital i.e., AZN Capital and FlexShopper go up and down completely randomly.
Pair Corralation between AZN Capital and FlexShopper
If you would invest 122.00 in FlexShopper on August 27, 2024 and sell it today you would earn a total of 46.00 from holding FlexShopper or generate 37.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
AZN Capital Corp vs. FlexShopper
Performance |
| Timeline |
| AZN Capital Corp |
| FlexShopper |
AZN Capital and FlexShopper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AZN Capital and FlexShopper
The main advantage of trading using opposite AZN Capital and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AZN Capital position performs unexpectedly, FlexShopper 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 FlexShopper will offset losses from the drop in FlexShopper's long position.| AZN Capital vs. United Rentals | AZN Capital vs. AerCap Holdings NV | AZN Capital vs. Fortress Transp Infra | AZN Capital vs. U Haul Holding |
| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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