Correlation Between FlexShopper and Rank Group
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Rank Group 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 Rank Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and The Rank Group, you can compare the effects of market volatilities on FlexShopper and Rank Group 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 Rank Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Rank Group.
Diversification Opportunities for FlexShopper and Rank Group
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between FlexShopper and Rank is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and The Rank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rank Group 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 Rank Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rank Group has no effect on the direction of FlexShopper i.e., FlexShopper and Rank Group go up and down completely randomly.
Pair Corralation between FlexShopper and Rank Group
Given the investment horizon of 90 days FlexShopper is expected to generate 1.78 times more return on investment than Rank Group. However, FlexShopper is 1.78 times more volatile than The Rank Group. It trades about 0.04 of its potential returns per unit of risk. The Rank Group is currently generating about 0.0 per unit of risk. If you would invest 112.00 in FlexShopper on November 2, 2024 and sell it today you would earn a total of 35.00 from holding FlexShopper or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FlexShopper vs. The Rank Group
Performance |
| Timeline |
| FlexShopper |
| Rank Group |
FlexShopper and Rank Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Rank Group
The main advantage of trading using opposite FlexShopper and Rank Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Rank Group 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 Rank Group will offset losses from the drop in Rank Group's long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Rank Group vs. Ambev SA ADR | Rank Group vs. SLR Investment Corp | Rank Group vs. Shenzhen Investment Holdings | Rank Group vs. Monster Beverage Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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