Correlation Between Flexion Mobile and Media
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Flexion Mobile and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Media.
Diversification Opportunities for Flexion Mobile and Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flexion and Media is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Media go up and down completely randomly.
Pair Corralation between Flexion Mobile and Media
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Media. But the stock apears to be less risky and, when comparing its historical volatility, Flexion Mobile PLC is 1.94 times less risky than Media. The stock trades about -0.09 of its potential returns per unit of risk. The Media and Games is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,894 in Media and Games on August 27, 2024 and sell it today you would earn a total of 2,791 from holding Media and Games or generate 147.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Media and Games
Performance |
| Timeline |
| Flexion Mobile PLC |
| Media and Games |
Flexion Mobile and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Media
The main advantage of trading using opposite Flexion Mobile and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Flexion Mobile vs. Beowulf Mining PLC | Flexion Mobile vs. Redsense Medical AB | Flexion Mobile vs. Corline Biomedical AB | Flexion Mobile vs. Leading Edge Materials |
| Media vs. Flexion Mobile PLC | Media vs. iZafe Group AB | Media vs. KABE Group AB | Media vs. IAR Systems Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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