Correlation Between FlexShopper and Aarons
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Aarons 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 FlexShopper and Aarons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and The Aarons, you can compare the effects of market volatilities on FlexShopper and Aarons 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 FlexShopper with a short position of Aarons. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Aarons.
Diversification Opportunities for FlexShopper and Aarons
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FlexShopper and Aarons is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and The Aarons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aarons and FlexShopper 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 FlexShopper are associated (or correlated) with Aarons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarons has no effect on the direction of FlexShopper i.e., FlexShopper and Aarons go up and down completely randomly.
Pair Corralation between FlexShopper and Aarons
If you would invest 148.00 in FlexShopper on August 30, 2024 and sell it today you would earn a total of 37.00 from holding FlexShopper or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
FlexShopper vs. The Aarons
Performance |
| Timeline |
| FlexShopper |
| Aarons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
FlexShopper and Aarons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Aarons
The main advantage of trading using opposite FlexShopper and Aarons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Aarons 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 Aarons will offset losses from the drop in Aarons' long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Aarons vs. Custom Truck One | Aarons vs. PROG Holdings | Aarons vs. McGrath RentCorp | Aarons vs. HE Equipment Services |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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