Correlation Between Fluent and Falcons Beyond
Can any of the company-specific risk be diversified away by investing in both Fluent and Falcons Beyond 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 Falcons Beyond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Falcons Beyond Global,, you can compare the effects of market volatilities on Fluent and Falcons Beyond 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 Falcons Beyond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Falcons Beyond.
Diversification Opportunities for Fluent and Falcons Beyond
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fluent and Falcons is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Falcons Beyond Global, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcons Beyond Global, 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 Falcons Beyond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcons Beyond Global, has no effect on the direction of Fluent i.e., Fluent and Falcons Beyond go up and down completely randomly.
Pair Corralation between Fluent and Falcons Beyond
Given the investment horizon of 90 days Fluent Inc is expected to generate 0.63 times more return on investment than Falcons Beyond. However, Fluent Inc is 1.6 times less risky than Falcons Beyond. It trades about 0.13 of its potential returns per unit of risk. Falcons Beyond Global, is currently generating about -0.55 per unit of risk. If you would invest 268.00 in Fluent Inc on October 23, 2024 and sell it today you would earn a total of 17.50 from holding Fluent Inc or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. Falcons Beyond Global,
Performance |
| Timeline |
| Fluent Inc |
| Falcons Beyond Global, |
Fluent and Falcons Beyond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Falcons Beyond
The main advantage of trading using opposite Fluent and Falcons Beyond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Falcons Beyond 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 Falcons Beyond will offset losses from the drop in Falcons Beyond's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Falcons Beyond vs. Youdao Inc | Falcons Beyond vs. Pearson PLC ADR | Falcons Beyond vs. Lincoln Educational Services | Falcons Beyond vs. Magna International |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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