Correlation Between Doubledown Interactive and Flex
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive and Flex 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 Doubledown Interactive and Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Flex, you can compare the effects of market volatilities on Doubledown Interactive and Flex 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 Doubledown Interactive with a short position of Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Flex.
Diversification Opportunities for Doubledown Interactive and Flex
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubledown and Flex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Flex go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Flex
Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the Flex. In addition to that, Doubledown Interactive is 1.2 times more volatile than Flex. It trades about -0.01 of its total potential returns per unit of risk. Flex is currently generating about 0.27 per unit of volatility. If you would invest 3,525 in Flex on August 28, 2024 and sell it today you would earn a total of 582.00 from holding Flex or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Flex
Performance |
| Timeline |
| Doubledown Interactive |
| Flex |
Doubledown Interactive and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Flex
The main advantage of trading using opposite Doubledown Interactive and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| Doubledown Interactive vs. AEye Inc | Doubledown Interactive vs. Arqit Quantum Warrants | Doubledown Interactive vs. Xos Equity Warrants |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |