Correlation Between Fluent and SEP Acquisition
Can any of the company-specific risk be diversified away by investing in both Fluent and SEP Acquisition 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 SEP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and SEP Acquisition Corp, you can compare the effects of market volatilities on Fluent and SEP Acquisition 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 SEP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and SEP Acquisition.
Diversification Opportunities for Fluent and SEP Acquisition
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fluent and SEP is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and SEP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEP Acquisition Corp 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 SEP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEP Acquisition Corp has no effect on the direction of Fluent i.e., Fluent and SEP Acquisition go up and down completely randomly.
Pair Corralation between Fluent and SEP Acquisition
Given the investment horizon of 90 days Fluent is expected to generate 1.19 times less return on investment than SEP Acquisition. In addition to that, Fluent is 1.2 times more volatile than SEP Acquisition Corp. It trades about 0.02 of its total potential returns per unit of risk. SEP Acquisition Corp is currently generating about 0.03 per unit of volatility. If you would invest 975.00 in SEP Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 51.00 from holding SEP Acquisition Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.08% |
| Values | Daily Returns |
Fluent Inc vs. SEP Acquisition Corp
Performance |
| Timeline |
| Fluent Inc |
| SEP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fluent and SEP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and SEP Acquisition
The main advantage of trading using opposite Fluent and SEP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, SEP Acquisition 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 SEP Acquisition will offset losses from the drop in SEP Acquisition's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| SEP Acquisition vs. AMCON Distributing | SEP Acquisition vs. Acco Brands | SEP Acquisition vs. Skillful Craftsman Education | SEP Acquisition vs. John Wiley Sons |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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