Correlation Between FLT Old and F5 Networks
Can any of the company-specific risk be diversified away by investing in both FLT Old and F5 Networks 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 FLT Old and F5 Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLT Old and F5 Networks, you can compare the effects of market volatilities on FLT Old and F5 Networks 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 FLT Old with a short position of F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLT Old and F5 Networks.
Diversification Opportunities for FLT Old and F5 Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLT and FFIV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLT Old and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks and FLT Old 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 FLT Old are associated (or correlated) with F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of FLT Old i.e., FLT Old and F5 Networks go up and down completely randomly.
Pair Corralation between FLT Old and F5 Networks
If you would invest 25,041 in F5 Networks on October 20, 2024 and sell it today you would earn a total of 1,354 from holding F5 Networks or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
FLT Old vs. F5 Networks
Performance |
| Timeline |
| FLT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| F5 Networks |
FLT Old and F5 Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLT Old and F5 Networks
The main advantage of trading using opposite FLT Old and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLT Old position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.| FLT Old vs. Gentex | FLT Old vs. Sphere Entertainment Co | FLT Old vs. Kingboard Chemical Holdings | FLT Old vs. Sensient Technologies |
| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |