Correlation Between FlexShopper and Koppers Holdings
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Koppers 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 Koppers Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and Koppers Holdings, you can compare the effects of market volatilities on FlexShopper and Koppers 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 Koppers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Koppers Holdings.
Diversification Opportunities for FlexShopper and Koppers Holdings
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between FlexShopper and Koppers is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and Koppers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koppers 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 Koppers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koppers Holdings has no effect on the direction of FlexShopper i.e., FlexShopper and Koppers Holdings go up and down completely randomly.
Pair Corralation between FlexShopper and Koppers Holdings
Given the investment horizon of 90 days FlexShopper is expected to generate 2.16 times more return on investment than Koppers Holdings. However, FlexShopper is 2.16 times more volatile than Koppers Holdings. It trades about 0.04 of its potential returns per unit of risk. Koppers Holdings is currently generating about 0.03 per unit of risk. If you would invest 143.00 in FlexShopper on August 28, 2024 and sell it today you would earn a total of 34.00 from holding FlexShopper or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShopper vs. Koppers Holdings
Performance |
| Timeline |
| FlexShopper |
| Koppers Holdings |
FlexShopper and Koppers Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Koppers Holdings
The main advantage of trading using opposite FlexShopper and Koppers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Koppers 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 Koppers Holdings will offset losses from the drop in Koppers Holdings' long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Koppers Holdings vs. Quaker Chemical | Koppers Holdings vs. Minerals Technologies | Koppers Holdings vs. Innospec | Koppers Holdings vs. H B Fuller |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |