Correlation Between Flagship Investments and Calix
Can any of the company-specific risk be diversified away by investing in both Flagship Investments and Calix 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 Flagship Investments and Calix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagship Investments and Calix, you can compare the effects of market volatilities on Flagship Investments and Calix 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 Flagship Investments with a short position of Calix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagship Investments and Calix.
Diversification Opportunities for Flagship Investments and Calix
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flagship and Calix is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Flagship Investments and Calix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix and Flagship Investments 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 Flagship Investments are associated (or correlated) with Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix has no effect on the direction of Flagship Investments i.e., Flagship Investments and Calix go up and down completely randomly.
Pair Corralation between Flagship Investments and Calix
Assuming the 90 days trading horizon Flagship Investments is expected to generate 0.29 times more return on investment than Calix. However, Flagship Investments is 3.41 times less risky than Calix. It trades about 0.1 of its potential returns per unit of risk. Calix is currently generating about -0.09 per unit of risk. If you would invest 154.00 in Flagship Investments on September 14, 2024 and sell it today you would earn a total of 67.00 from holding Flagship Investments or generate 43.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flagship Investments vs. Calix
Performance |
| Timeline |
| Flagship Investments |
| Calix |
Flagship Investments and Calix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagship Investments and Calix
The main advantage of trading using opposite Flagship Investments and Calix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagship Investments position performs unexpectedly, Calix 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 Calix will offset losses from the drop in Calix's long position.| Flagship Investments vs. Australian Foundation Investment | Flagship Investments vs. MFF Capital Investments | Flagship Investments vs. Metrics Master Income | Flagship Investments vs. L1 Long Short |
| Calix vs. Centuria Industrial Reit | Calix vs. Australian United Investment | Calix vs. Retail Food Group | Calix vs. Flagship Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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