Correlation Between Flexion Mobile and USWE Sports
Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and USWE Sports 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 USWE Sports 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 USWE Sports AB, you can compare the effects of market volatilities on Flexion Mobile and USWE Sports 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 USWE Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and USWE Sports.
Diversification Opportunities for Flexion Mobile and USWE Sports
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flexion and USWE is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and USWE Sports AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE Sports AB 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 USWE Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE Sports AB has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and USWE Sports go up and down completely randomly.
Pair Corralation between Flexion Mobile and USWE Sports
Assuming the 90 days trading horizon Flexion Mobile PLC is expected to under-perform the USWE Sports. In addition to that, Flexion Mobile is 1.4 times more volatile than USWE Sports AB. It trades about -0.01 of its total potential returns per unit of risk. USWE Sports AB is currently generating about 0.13 per unit of volatility. If you would invest 875.00 in USWE Sports AB on September 3, 2024 and sell it today you would earn a total of 45.00 from holding USWE Sports AB or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexion Mobile PLC vs. USWE Sports AB
Performance |
| Timeline |
| Flexion Mobile PLC |
| USWE Sports AB |
Flexion Mobile and USWE Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexion Mobile and USWE Sports
The main advantage of trading using opposite Flexion Mobile and USWE Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexion Mobile position performs unexpectedly, USWE Sports 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 USWE Sports will offset losses from the drop in USWE Sports' long position.| Flexion Mobile vs. Idogen AB | Flexion Mobile vs. Clean Motion AB | Flexion Mobile vs. Arion banki hf | Flexion Mobile vs. KABE Group AB |
| USWE Sports vs. Truecaller AB | USWE Sports vs. Dedicare AB | USWE Sports vs. RVRC Holding AB | USWE Sports vs. AddLife 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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