Correlation Between FlexShopper and Emeco Holdings
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Emeco Holdings 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 Emeco Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and Emeco Holdings Limited, you can compare the effects of market volatilities on FlexShopper and Emeco Holdings 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 Emeco Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Emeco Holdings.
Diversification Opportunities for FlexShopper and Emeco Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FlexShopper and Emeco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and Emeco Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeco Holdings 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 Emeco Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeco Holdings has no effect on the direction of FlexShopper i.e., FlexShopper and Emeco Holdings go up and down completely randomly.
Pair Corralation between FlexShopper and Emeco Holdings
Given the investment horizon of 90 days FlexShopper is expected to generate 3.66 times more return on investment than Emeco Holdings. However, FlexShopper is 3.66 times more volatile than Emeco Holdings Limited. It trades about 0.09 of its potential returns per unit of risk. Emeco Holdings Limited is currently generating about 0.09 per unit of risk. If you would invest 108.00 in FlexShopper on October 22, 2024 and sell it today you would earn a total of 58.00 from holding FlexShopper or generate 53.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
FlexShopper vs. Emeco Holdings Limited
Performance |
| Timeline |
| FlexShopper |
| Emeco Holdings |
FlexShopper and Emeco Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Emeco Holdings
The main advantage of trading using opposite FlexShopper and Emeco Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Emeco Holdings 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 Emeco Holdings will offset losses from the drop in Emeco Holdings' long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Emeco Holdings vs. Ashtead Gro | Emeco Holdings vs. FlexShopper | Emeco Holdings vs. Multi Ways Holdings | Emeco Holdings vs. Hertz Global Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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