Correlation Between Flexible Solutions and Chimerix
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions and Chimerix 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 Chimerix 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 Chimerix, you can compare the effects of market volatilities on Flexible Solutions and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Chimerix.
Diversification Opportunities for Flexible Solutions and Chimerix
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flexible and Chimerix is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and Chimerix go up and down completely randomly.
Pair Corralation between Flexible Solutions and Chimerix
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 1.02 times more return on investment than Chimerix. However, Flexible Solutions is 1.02 times more volatile than Chimerix. It trades about 0.13 of its potential returns per unit of risk. Chimerix is currently generating about 0.01 per unit of risk. If you would invest 173.00 in Flexible Solutions International on September 3, 2024 and sell it today you would earn a total of 242.00 from holding Flexible Solutions International or generate 139.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexible Solutions Internation vs. Chimerix
Performance |
| Timeline |
| Flexible Solutions |
| Chimerix |
Flexible Solutions and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and Chimerix
The main advantage of trading using opposite Flexible Solutions and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Flexible Solutions vs. SPACE | Flexible Solutions vs. Bayview Acquisition Corp | Flexible Solutions vs. T Rowe Price | Flexible Solutions vs. Ampleforth |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |