Correlation Between Fluent and Cunningham Natural
Can any of the company-specific risk be diversified away by investing in both Fluent and Cunningham Natural 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 Fluent and Cunningham Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Cunningham Natural Resources, you can compare the effects of market volatilities on Fluent and Cunningham Natural 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 Fluent with a short position of Cunningham Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Cunningham Natural.
Diversification Opportunities for Fluent and Cunningham Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fluent and Cunningham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Cunningham Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cunningham Natural and Fluent 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 Fluent Inc are associated (or correlated) with Cunningham Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cunningham Natural has no effect on the direction of Fluent i.e., Fluent and Cunningham Natural go up and down completely randomly.
Pair Corralation between Fluent and Cunningham Natural
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Cunningham Natural. But the stock apears to be less risky and, when comparing its historical volatility, Fluent Inc is 4.03 times less risky than Cunningham Natural. The stock trades about -0.02 of its potential returns per unit of risk. The Cunningham Natural Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.04 in Cunningham Natural Resources on September 3, 2024 and sell it today you would lose (0.24) from holding Cunningham Natural Resources or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 3.16% |
| Values | Daily Returns |
Fluent Inc vs. Cunningham Natural Resources
Performance |
| Timeline |
| Fluent Inc |
| Cunningham Natural |
Fluent and Cunningham Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Cunningham Natural
The main advantage of trading using opposite Fluent and Cunningham Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Cunningham Natural 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 Cunningham Natural will offset losses from the drop in Cunningham Natural's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Cunningham Natural vs. Aehr Test Systems | Cunningham Natural vs. Perseus Mining Limited | Cunningham Natural vs. Harmony Gold Mining | Cunningham Natural vs. Elmos Semiconductor SE |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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