Correlation Between FLT Old and Wex
Can any of the company-specific risk be diversified away by investing in both FLT Old and Wex 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 Wex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLT Old and Wex Inc, you can compare the effects of market volatilities on FLT Old and Wex 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 Wex. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLT Old and Wex.
Diversification Opportunities for FLT Old and Wex
Pay attention - limited upside
The 3 months correlation between FLT and Wex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLT Old and Wex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wex Inc 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 Wex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wex Inc has no effect on the direction of FLT Old i.e., FLT Old and Wex go up and down completely randomly.
Pair Corralation between FLT Old and Wex
If you would invest (100.00) in FLT Old on November 18, 2024 and sell it today you would earn a total of 100.00 from holding FLT Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FLT Old vs. Wex Inc
Performance |
| Timeline |
| FLT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Wex Inc |
FLT Old and Wex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLT Old and Wex
The main advantage of trading using opposite FLT Old and Wex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLT Old position performs unexpectedly, Wex 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 Wex will offset losses from the drop in Wex's long position.| FLT Old vs. Transcontinental Realty Investors | FLT Old vs. Compania Cervecerias Unidas | FLT Old vs. SNDL Inc | FLT Old vs. Summit Hotel Properties |
| Wex vs. CSG Systems International | Wex vs. VeriSign | Wex vs. Consensus Cloud Solutions | Wex vs. Global Blue Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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