Correlation Between Fluent and Sirius XM
Can any of the company-specific risk be diversified away by investing in both Fluent and Sirius XM 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 Sirius XM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Sirius XM Holding, you can compare the effects of market volatilities on Fluent and Sirius XM 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 Sirius XM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Sirius XM.
Diversification Opportunities for Fluent and Sirius XM
Very good diversification
The 3 months correlation between Fluent and Sirius is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Sirius XM Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holding 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 Sirius XM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holding has no effect on the direction of Fluent i.e., Fluent and Sirius XM go up and down completely randomly.
Pair Corralation between Fluent and Sirius XM
Given the investment horizon of 90 days Fluent Inc is expected to generate 1.53 times more return on investment than Sirius XM. However, Fluent is 1.53 times more volatile than Sirius XM Holding. It trades about 0.03 of its potential returns per unit of risk. Sirius XM Holding is currently generating about -0.06 per unit of risk. If you would invest 275.00 in Fluent Inc on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Fluent Inc or generate 0.73% 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. Sirius XM Holding
Performance |
| Timeline |
| Fluent Inc |
| Sirius XM Holding |
Fluent and Sirius XM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and Sirius XM
The main advantage of trading using opposite Fluent and Sirius XM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Sirius XM 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 Sirius XM will offset losses from the drop in Sirius XM's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| Sirius XM vs. Paramount Global Class | Sirius XM vs. Walt Disney | Sirius XM vs. Roku Inc | Sirius XM vs. Netflix |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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