Correlation Between Flexpoint Sensor and Eline Entertainment
Can any of the company-specific risk be diversified away by investing in both Flexpoint Sensor and Eline Entertainment 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 Flexpoint Sensor and Eline Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexpoint Sensor Systems and Eline Entertainment Group, you can compare the effects of market volatilities on Flexpoint Sensor and Eline Entertainment 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 Flexpoint Sensor with a short position of Eline Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexpoint Sensor and Eline Entertainment.
Diversification Opportunities for Flexpoint Sensor and Eline Entertainment
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Flexpoint and Eline is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Flexpoint Sensor Systems and Eline Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eline Entertainment and Flexpoint Sensor 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 Flexpoint Sensor Systems are associated (or correlated) with Eline Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eline Entertainment has no effect on the direction of Flexpoint Sensor i.e., Flexpoint Sensor and Eline Entertainment go up and down completely randomly.
Pair Corralation between Flexpoint Sensor and Eline Entertainment
Given the investment horizon of 90 days Flexpoint Sensor Systems is expected to under-perform the Eline Entertainment. But the pink sheet apears to be less risky and, when comparing its historical volatility, Flexpoint Sensor Systems is 2.22 times less risky than Eline Entertainment. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Eline Entertainment Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Eline Entertainment Group on January 11, 2025 and sell it today you would lose (0.02) from holding Eline Entertainment Group or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexpoint Sensor Systems vs. Eline Entertainment Group
Performance |
| Timeline |
| Flexpoint Sensor Systems |
| Eline Entertainment |
Flexpoint Sensor and Eline Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexpoint Sensor and Eline Entertainment
The main advantage of trading using opposite Flexpoint Sensor and Eline Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexpoint Sensor position performs unexpectedly, Eline Entertainment 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 Eline Entertainment will offset losses from the drop in Eline Entertainment's long position.The idea behind Flexpoint Sensor Systems and Eline Entertainment Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Eline Entertainment vs. Icon Media Holdings | Eline Entertainment vs. Green Leaf Innovations | Eline Entertainment vs. Plandai Biotech | Eline Entertainment vs. All American Gld |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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