Correlation Between Flexible Solutions and PETROLEOS
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By analyzing existing cross correlation between Flexible Solutions International and PETROLEOS MEXICANOS 95, you can compare the effects of market volatilities on Flexible Solutions and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and PETROLEOS.
Diversification Opportunities for Flexible Solutions and PETROLEOS
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flexible and PETROLEOS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and PETROLEOS MEXICANOS 95 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and PETROLEOS go up and down completely randomly.
Pair Corralation between Flexible Solutions and PETROLEOS
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 0.89 times more return on investment than PETROLEOS. However, Flexible Solutions International is 1.13 times less risky than PETROLEOS. It trades about 0.1 of its potential returns per unit of risk. PETROLEOS MEXICANOS 95 is currently generating about -0.3 per unit of risk. If you would invest 384.00 in Flexible Solutions International on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Flexible Solutions International or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Flexible Solutions Internation vs. PETROLEOS MEXICANOS 95
Performance |
| Timeline |
| Flexible Solutions |
| PETROLEOS MEXICANOS |
Flexible Solutions and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and PETROLEOS
The main advantage of trading using opposite Flexible Solutions and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS'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 |
| PETROLEOS vs. Bank of New | PETROLEOS vs. Upper Street Marketing | PETROLEOS vs. Kite Realty Group | PETROLEOS vs. Logan Ridge Finance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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