Correlation Between Flexible Solutions and CEIX Old
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions and CEIX Old 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 CEIX Old 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 CEIX Old, you can compare the effects of market volatilities on Flexible Solutions and CEIX Old 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 CEIX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and CEIX Old.
Diversification Opportunities for Flexible Solutions and CEIX Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flexible and CEIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and CEIX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEIX Old 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 CEIX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEIX Old has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and CEIX Old go up and down completely randomly.
Pair Corralation between Flexible Solutions and CEIX Old
If you would invest 288.00 in Flexible Solutions International on November 28, 2024 and sell it today you would earn a total of 312.00 from holding Flexible Solutions International or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Flexible Solutions Internation vs. CEIX Old
Performance |
| Timeline |
| Flexible Solutions |
| CEIX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Flexible Solutions and CEIX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and CEIX Old
The main advantage of trading using opposite Flexible Solutions and CEIX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, CEIX Old 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 CEIX Old will offset losses from the drop in CEIX Old's 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 |
| CEIX Old vs. Alliance Resource Partners | CEIX Old vs. Natural Resource Partners | CEIX Old vs. Hallador Energy | CEIX Old vs. NACCO Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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