Correlation Between Flexion Mobile and Kollect On
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Kollect On 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 Flexion Mobile and Kollect On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexion Mobile PLC and Kollect on Demand, you can compare the effects of market volatilities on Flexion Mobile and Kollect On 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 Flexion Mobile with a short position of Kollect On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Kollect On.
Diversification Opportunities for Flexion Mobile and Kollect On
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flexion and Kollect is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Kollect on Demand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kollect on Demand and Flexion Mobile 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 Flexion Mobile PLC are associated (or correlated) with Kollect On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kollect on Demand has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Kollect On go up and down completely randomly.
Pair Corralation between Flexion Mobile and Kollect On
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Kollect On. But the stock apears to be less risky and, when comparing its historical volatility, Flexion Mobile PLC is 2.6 times less risky than Kollect On. The stock trades about -0.02 of its potential returns per unit of risk. The Kollect on Demand is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Kollect on Demand on September 24, 2024 and sell it today you would earn a total of 90.00 from holding Kollect on Demand or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Kollect on Demand
Performance |
| Timeline |
| Flexion Mobile PLC |
| Kollect on Demand |
Flexion Mobile and Kollect On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Kollect On
The main advantage of trading using opposite Flexion Mobile and Kollect On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Kollect On 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 Kollect On will offset losses from the drop in Kollect On's long position.| Flexion Mobile vs. Samhllsbyggnadsbolaget i Norden | Flexion Mobile vs. Sinch AB | Flexion Mobile vs. Zaptec AS | Flexion Mobile vs. Evolution AB |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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