Correlation Between Flex and 44409MAB2
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By analyzing existing cross correlation between Flex and US44409MAB28, you can compare the effects of market volatilities on Flex and 44409MAB2 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 Flex with a short position of 44409MAB2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flex and 44409MAB2.
Diversification Opportunities for Flex and 44409MAB2
Very good diversification
The 3 months correlation between Flex and 44409MAB2 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Flex and US44409MAB28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US44409MAB28 and Flex 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 Flex are associated (or correlated) with 44409MAB2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US44409MAB28 has no effect on the direction of Flex i.e., Flex and 44409MAB2 go up and down completely randomly.
Pair Corralation between Flex and 44409MAB2
Given the investment horizon of 90 days Flex is expected to generate 1.81 times more return on investment than 44409MAB2. However, Flex is 1.81 times more volatile than US44409MAB28. It trades about 0.08 of its potential returns per unit of risk. US44409MAB28 is currently generating about 0.01 per unit of risk. If you would invest 1,053 in Flex on September 3, 2024 and sell it today you would earn a total of 2,844 from holding Flex or generate 270.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.32% |
| Values | Daily Returns |
Flex vs. US44409MAB28
Performance |
| Timeline |
| Flex |
| US44409MAB28 |
Flex and 44409MAB2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flex and 44409MAB2
The main advantage of trading using opposite Flex and 44409MAB2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flex position performs unexpectedly, 44409MAB2 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 44409MAB2 will offset losses from the drop in 44409MAB2's long position.The idea behind Flex and US44409MAB28 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 44409MAB2 vs. Axalta Coating Systems | 44409MAB2 vs. CF Industries Holdings | 44409MAB2 vs. Ecolab Inc | 44409MAB2 vs. Flex |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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