Correlation Between Fortress Transportation and FlexShopper
Can any of the company-specific risk be diversified away by investing in both Fortress Transportation and FlexShopper 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 Fortress Transportation and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Transportation and and FlexShopper, you can compare the effects of market volatilities on Fortress Transportation and FlexShopper 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 Fortress Transportation with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Transportation and FlexShopper.
Diversification Opportunities for Fortress Transportation and FlexShopper
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fortress and FlexShopper is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Transportation and and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and Fortress Transportation 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 Fortress Transportation and are associated (or correlated) with FlexShopper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShopper has no effect on the direction of Fortress Transportation i.e., Fortress Transportation and FlexShopper go up and down completely randomly.
Pair Corralation between Fortress Transportation and FlexShopper
Assuming the 90 days horizon Fortress Transportation and is expected to generate 0.12 times more return on investment than FlexShopper. However, Fortress Transportation and is 8.21 times less risky than FlexShopper. It trades about -0.1 of its potential returns per unit of risk. FlexShopper is currently generating about -0.12 per unit of risk. If you would invest 2,562 in Fortress Transportation and on November 2, 2024 and sell it today you would lose (92.00) from holding Fortress Transportation and or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Transportation and vs. FlexShopper
Performance |
| Timeline |
| Fortress Transportation |
| FlexShopper |
Fortress Transportation and FlexShopper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Transportation and FlexShopper
The main advantage of trading using opposite Fortress Transportation and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Transportation position performs unexpectedly, FlexShopper 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 FlexShopper will offset losses from the drop in FlexShopper's long position.| Fortress Transportation vs. Fortress Transportation and | Fortress Transportation vs. SiriusPoint | Fortress Transportation vs. New York Mortgage | Fortress Transportation vs. Compass Diversified |
| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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