Correlation Between FLEX LNG and Brooge Energy
Can any of the company-specific risk be diversified away by investing in both FLEX LNG and Brooge Energy 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 FLEX LNG and Brooge Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLEX LNG and Brooge Energy Limited, you can compare the effects of market volatilities on FLEX LNG and Brooge Energy 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 FLEX LNG with a short position of Brooge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLEX LNG and Brooge Energy.
Diversification Opportunities for FLEX LNG and Brooge Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLEX and Brooge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLEX LNG and Brooge Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooge Energy Limited and FLEX LNG 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 FLEX LNG are associated (or correlated) with Brooge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooge Energy Limited has no effect on the direction of FLEX LNG i.e., FLEX LNG and Brooge Energy go up and down completely randomly.
Pair Corralation between FLEX LNG and Brooge Energy
If you would invest (100.00) in Brooge Energy Limited on January 12, 2025 and sell it today you would earn a total of 100.00 from holding Brooge Energy Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FLEX LNG vs. Brooge Energy Limited
Performance |
| Timeline |
| FLEX LNG |
| Brooge Energy Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
FLEX LNG and Brooge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLEX LNG and Brooge Energy
The main advantage of trading using opposite FLEX LNG and Brooge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLEX LNG position performs unexpectedly, Brooge Energy 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 Brooge Energy will offset losses from the drop in Brooge Energy's long position.| FLEX LNG vs. Ucommune International | FLEX LNG vs. Lion Financial Group | FLEX LNG vs. Aquagold International | FLEX LNG vs. Morningstar Unconstrained Allocation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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