Correlation Between FlexShopper and Solution Financial
Can any of the company-specific risk be diversified away by investing in both FlexShopper and Solution Financial 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 Solution Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and Solution Financial, you can compare the effects of market volatilities on FlexShopper and Solution Financial 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 Solution Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and Solution Financial.
Diversification Opportunities for FlexShopper and Solution Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between FlexShopper and Solution is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper and Solution Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Financial 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 Solution Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Financial has no effect on the direction of FlexShopper i.e., FlexShopper and Solution Financial go up and down completely randomly.
Pair Corralation between FlexShopper and Solution Financial
Given the investment horizon of 90 days FlexShopper is expected to generate 1.6 times more return on investment than Solution Financial. However, FlexShopper is 1.6 times more volatile than Solution Financial. It trades about 0.04 of its potential returns per unit of risk. Solution Financial 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. Solution Financial
Performance |
| Timeline |
| FlexShopper |
| Solution Financial |
FlexShopper and Solution Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and Solution Financial
The main advantage of trading using opposite FlexShopper and Solution Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper position performs unexpectedly, Solution Financial 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 Solution Financial will offset losses from the drop in Solution Financial's long position.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| Solution Financial vs. Ashtead Group plc | Solution Financial vs. African Discovery Group | Solution Financial vs. Emeco Holdings Limited | Solution Financial vs. BOC Aviation Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |