Correlation Between FLJ Old and Colabor
Can any of the company-specific risk be diversified away by investing in both FLJ Old and Colabor 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 Colabor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLJ Old and Colabor Group, you can compare the effects of market volatilities on FLJ Old and Colabor 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 Colabor. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLJ Old and Colabor.
Diversification Opportunities for FLJ Old and Colabor
Pay attention - limited upside
The 3 months correlation between FLJ and Colabor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLJ Old and Colabor Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colabor Group 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 Colabor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colabor Group has no effect on the direction of FLJ Old i.e., FLJ Old and Colabor go up and down completely randomly.
Pair Corralation between FLJ Old and Colabor
Considering the 90-day investment horizon FLJ Old is expected to generate 10.33 times more return on investment than Colabor. However, FLJ Old is 10.33 times more volatile than Colabor Group. It trades about 0.08 of its potential returns per unit of risk. Colabor Group is currently generating about -0.06 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 | 50.2% |
| Values | Daily Returns |
FLJ Old vs. Colabor Group
Performance |
| Timeline |
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Colabor Group |
FLJ Old and Colabor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLJ Old and Colabor
The main advantage of trading using opposite FLJ Old and Colabor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLJ Old position performs unexpectedly, Colabor 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 Colabor will offset losses from the drop in Colabor'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 |
| Colabor vs. Mission Produce | Colabor vs. The Andersons | Colabor vs. Bunzl plc | Colabor vs. Innovative Food Hldg |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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