Correlation Between Flexion Mobile and Paradox Interactive
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Paradox Interactive 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 Paradox Interactive 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 Paradox Interactive AB, you can compare the effects of market volatilities on Flexion Mobile and Paradox Interactive 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 Paradox Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Paradox Interactive.
Diversification Opportunities for Flexion Mobile and Paradox Interactive
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flexion and Paradox is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Paradox Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradox Interactive 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 Paradox Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradox Interactive has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Paradox Interactive go up and down completely randomly.
Pair Corralation between Flexion Mobile and Paradox Interactive
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to generate 1.68 times more return on investment than Paradox Interactive. However, Flexion Mobile is 1.68 times more volatile than Paradox Interactive AB. It trades about -0.15 of its potential returns per unit of risk. Paradox Interactive AB is currently generating about -0.27 per unit of risk. If you would invest 810.00 in Flexion Mobile PLC on August 24, 2024 and sell it today you would lose (64.00) from holding Flexion Mobile PLC or give up 7.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Paradox Interactive AB
Performance |
| Timeline |
| Flexion Mobile PLC |
| Paradox Interactive |
Flexion Mobile and Paradox Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Paradox Interactive
The main advantage of trading using opposite Flexion Mobile and Paradox Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Paradox Interactive 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 Paradox Interactive will offset losses from the drop in Paradox Interactive's long position.| Flexion Mobile vs. Stillfront Group AB | Flexion Mobile vs. iZafe Group AB | Flexion Mobile vs. KABE Group AB | Flexion Mobile vs. IAR Systems Group |
| Paradox Interactive vs. Stillfront Group AB | Paradox Interactive vs. Embracer Group AB | Paradox Interactive vs. G5 Entertainment publ | Paradox Interactive 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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