Correlation Between Flexion Mobile and Upsales Technology
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Upsales Technology 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 Upsales Technology 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 Upsales Technology AB, you can compare the effects of market volatilities on Flexion Mobile and Upsales Technology 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 Upsales Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Upsales Technology.
Diversification Opportunities for Flexion Mobile and Upsales Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flexion and Upsales is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology 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 Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Upsales Technology go up and down completely randomly.
Pair Corralation between Flexion Mobile and Upsales Technology
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the Upsales Technology. But the stock apears to be less risky and, when comparing its historical volatility, Flexion Mobile PLC is 1.03 times less risky than Upsales Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Upsales Technology AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,300 in Upsales Technology AB on August 29, 2024 and sell it today you would lose (100.00) from holding Upsales Technology AB or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. Upsales Technology AB
Performance |
| Timeline |
| Flexion Mobile PLC |
| Upsales Technology |
Flexion Mobile and Upsales Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and Upsales Technology
The main advantage of trading using opposite Flexion Mobile and Upsales Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, Upsales Technology 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 Upsales Technology will offset losses from the drop in Upsales Technology's long position.| Flexion Mobile vs. JLT Mobile Computers | Flexion Mobile vs. Invisio Communications AB | Flexion Mobile vs. Swedbank AB | Flexion Mobile vs. Lundin Mining |
| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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