Correlation Between Colabor and FLJ Old
Can any of the company-specific risk be diversified away by investing in both Colabor and FLJ Old 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 Colabor and FLJ Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colabor Group and FLJ Old, you can compare the effects of market volatilities on Colabor and FLJ Old 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 Colabor with a short position of FLJ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colabor and FLJ Old.
Diversification Opportunities for Colabor and FLJ Old
Excellent diversification
The 3 months correlation between Colabor and FLJ is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Colabor Group and FLJ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ Old and Colabor 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 Colabor Group are associated (or correlated) with FLJ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLJ Old has no effect on the direction of Colabor i.e., Colabor and FLJ Old go up and down completely randomly.
Pair Corralation between Colabor and FLJ Old
If you would invest 119.00 in FLJ Old on October 23, 2024 and sell it today you would earn a total of 0.00 from holding FLJ Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Colabor Group vs. FLJ Old
Performance |
| Timeline |
| Colabor Group |
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Colabor and FLJ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colabor and FLJ Old
The main advantage of trading using opposite Colabor and FLJ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colabor position performs unexpectedly, FLJ Old 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 FLJ Old will offset losses from the drop in FLJ Old's long position.| Colabor vs. Mission Produce | Colabor vs. The Andersons | Colabor vs. Bunzl plc | Colabor vs. Innovative Food Hldg |
| FLJ Old vs. Ucommune International | FLJ Old vs. New Concept Energy | FLJ Old vs. Maui Land Pineapple | FLJ Old vs. Marcus Millichap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |