Correlation Between Flexible Solutions and Bolt Projects
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions and Bolt Projects 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 Flexible Solutions and Bolt Projects into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexible Solutions International and Bolt Projects Holdings,, you can compare the effects of market volatilities on Flexible Solutions and Bolt Projects 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 Flexible Solutions with a short position of Bolt Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Bolt Projects.
Diversification Opportunities for Flexible Solutions and Bolt Projects
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flexible and Bolt is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Bolt Projects Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Projects Holdings, and Flexible Solutions 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 Flexible Solutions International are associated (or correlated) with Bolt Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Projects Holdings, has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and Bolt Projects go up and down completely randomly.
Pair Corralation between Flexible Solutions and Bolt Projects
Considering the 90-day investment horizon Flexible Solutions is expected to generate 14.51 times less return on investment than Bolt Projects. But when comparing it to its historical volatility, Flexible Solutions International is 11.26 times less risky than Bolt Projects. It trades about 0.05 of its potential returns per unit of risk. Bolt Projects Holdings, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Bolt Projects Holdings, on September 2, 2024 and sell it today you would lose (16.60) from holding Bolt Projects Holdings, or give up 83.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.44% |
| Values | Daily Returns |
Flexible Solutions Internation vs. Bolt Projects Holdings,
Performance |
| Timeline |
| Flexible Solutions |
| Bolt Projects Holdings, |
Flexible Solutions and Bolt Projects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and Bolt Projects
The main advantage of trading using opposite Flexible Solutions and Bolt Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, Bolt Projects 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 Bolt Projects will offset losses from the drop in Bolt Projects' long position.| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
| Bolt Projects vs. Chemours Co | Bolt Projects vs. Dupont De Nemours | Bolt Projects vs. FutureFuel Corp | Bolt Projects vs. Danimer Scientific |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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