Correlation Between Flint Telecom and Castellum
Can any of the company-specific risk be diversified away by investing in both Flint Telecom and Castellum 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 Flint Telecom and Castellum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flint Telecom Group and Castellum, you can compare the effects of market volatilities on Flint Telecom and Castellum 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 Flint Telecom with a short position of Castellum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flint Telecom and Castellum.
Diversification Opportunities for Flint Telecom and Castellum
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flint and Castellum is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Flint Telecom Group and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum and Flint Telecom 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 Flint Telecom Group are associated (or correlated) with Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of Flint Telecom i.e., Flint Telecom and Castellum go up and down completely randomly.
Pair Corralation between Flint Telecom and Castellum
Given the investment horizon of 90 days Flint Telecom is expected to generate 13.38 times less return on investment than Castellum. But when comparing it to its historical volatility, Flint Telecom Group is 1.54 times less risky than Castellum. It trades about 0.01 of its potential returns per unit of risk. Castellum is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Castellum on November 5, 2024 and sell it today you would earn a total of 47.10 from holding Castellum or generate 214.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.65% |
| Values | Daily Returns |
Flint Telecom Group vs. Castellum
Performance |
| Timeline |
| Flint Telecom Group |
| Castellum |
Flint Telecom and Castellum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flint Telecom and Castellum
The main advantage of trading using opposite Flint Telecom and Castellum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flint Telecom position performs unexpectedly, Castellum 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 Castellum will offset losses from the drop in Castellum's long position.| Flint Telecom vs. Castellum | Flint Telecom vs. Datametrex AI Limited | Flint Telecom vs. TTEC Holdings | Flint Telecom vs. CLPS Inc |
| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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