Correlation Between Flexible Solutions and US Global
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions and US Global 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 US Global 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 US Global Investors, you can compare the effects of market volatilities on Flexible Solutions and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and US Global.
Diversification Opportunities for Flexible Solutions and US Global
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flexible and GROW is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and US Global go up and down completely randomly.
Pair Corralation between Flexible Solutions and US Global
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 2.98 times more return on investment than US Global. However, Flexible Solutions is 2.98 times more volatile than US Global Investors. It trades about 0.06 of its potential returns per unit of risk. US Global Investors is currently generating about 0.01 per unit of risk. If you would invest 400.00 in Flexible Solutions International on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Flexible Solutions International or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexible Solutions Internation vs. US Global Investors
Performance |
| Timeline |
| Flexible Solutions |
| US Global Investors |
Flexible Solutions and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and US Global
The main advantage of trading using opposite Flexible Solutions and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global'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 |
| US Global vs. Visa Class A | US Global vs. Diamond Hill Investment | US Global vs. Distoken Acquisition | US Global vs. Associated Capital Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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