Correlation Between FormPipe Software and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both FormPipe Software and Flexion Mobile 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 FormPipe Software and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FormPipe Software AB and Flexion Mobile PLC, you can compare the effects of market volatilities on FormPipe Software and Flexion Mobile 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 FormPipe Software with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of FormPipe Software and Flexion Mobile.
Diversification Opportunities for FormPipe Software and Flexion Mobile
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FormPipe and Flexion is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding FormPipe Software AB and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and FormPipe Software 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 FormPipe Software AB are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of FormPipe Software i.e., FormPipe Software and Flexion Mobile go up and down completely randomly.
Pair Corralation between FormPipe Software and Flexion Mobile
Assuming the 90 days trading horizon FormPipe Software AB is expected to generate 0.78 times more return on investment than Flexion Mobile. However, FormPipe Software AB is 1.28 times less risky than Flexion Mobile. It trades about 0.02 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.02 per unit of risk. If you would invest 2,312 in FormPipe Software AB on October 31, 2024 and sell it today you would earn a total of 128.00 from holding FormPipe Software AB or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FormPipe Software AB vs. Flexion Mobile PLC
Performance |
| Timeline |
| FormPipe Software |
| Flexion Mobile PLC |
FormPipe Software and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FormPipe Software and Flexion Mobile
The main advantage of trading using opposite FormPipe Software and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FormPipe Software position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.| FormPipe Software vs. Enea AB | FormPipe Software vs. Novotek AB | FormPipe Software vs. Addnode Group AB | FormPipe Software vs. Softronic AB |
| Flexion Mobile vs. Serstech AB | Flexion Mobile vs. TradeDoubler AB | Flexion Mobile vs. OptiCept Technologies AB | Flexion Mobile vs. Maven Wireless Sweden |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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