Correlation Between FLJ Old and Bunzl Plc
Can any of the company-specific risk be diversified away by investing in both FLJ Old and Bunzl Plc 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 FLJ Old and Bunzl Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLJ Old and Bunzl plc, you can compare the effects of market volatilities on FLJ Old and Bunzl Plc 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 FLJ Old with a short position of Bunzl Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLJ Old and Bunzl Plc.
Diversification Opportunities for FLJ Old and Bunzl Plc
Pay attention - limited upside
The 3 months correlation between FLJ and Bunzl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLJ Old and Bunzl plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bunzl plc and FLJ Old 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 FLJ Old are associated (or correlated) with Bunzl Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bunzl plc has no effect on the direction of FLJ Old i.e., FLJ Old and Bunzl Plc go up and down completely randomly.
Pair Corralation between FLJ Old and Bunzl Plc
Considering the 90-day investment horizon FLJ Old is expected to generate 19.09 times more return on investment than Bunzl Plc. However, FLJ Old is 19.09 times more volatile than Bunzl plc. It trades about 0.08 of its potential returns per unit of risk. Bunzl plc is currently generating about 0.04 per unit of risk. If you would invest 71.00 in FLJ Old on November 3, 2024 and sell it today you would earn a total of 48.00 from holding FLJ Old or generate 67.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
FLJ Old vs. Bunzl plc
Performance |
| Timeline |
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bunzl plc |
FLJ Old and Bunzl Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLJ Old and Bunzl Plc
The main advantage of trading using opposite FLJ Old and Bunzl Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLJ Old position performs unexpectedly, Bunzl Plc 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 Bunzl Plc will offset losses from the drop in Bunzl Plc's long position.| FLJ Old vs. Ucommune International | FLJ Old vs. New Concept Energy | FLJ Old vs. Maui Land Pineapple | FLJ Old vs. Marcus Millichap |
| Bunzl Plc vs. Associated British Foods | Bunzl Plc vs. Compass Group PLC | Bunzl Plc vs. Ashtead Gro | Bunzl Plc vs. Kerry Group PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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