Correlation Between HyreCar and FlexShopper
Can any of the company-specific risk be diversified away by investing in both HyreCar 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 HyreCar and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HyreCar and FlexShopper, you can compare the effects of market volatilities on HyreCar 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 HyreCar with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of HyreCar and FlexShopper.
Diversification Opportunities for HyreCar and FlexShopper
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HyreCar and FlexShopper is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HyreCar and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and HyreCar 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 HyreCar 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 HyreCar i.e., HyreCar and FlexShopper go up and down completely randomly.
Pair Corralation between HyreCar and FlexShopper
Assuming the 90 days horizon HyreCar is expected to under-perform the FlexShopper. In addition to that, HyreCar is 2.71 times more volatile than FlexShopper. It trades about -0.13 of its total potential returns per unit of risk. FlexShopper is currently generating about 0.22 per unit of volatility. If you would invest 109.00 in FlexShopper on September 2, 2024 and sell it today you would earn a total of 89.00 from holding FlexShopper or generate 81.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HyreCar vs. FlexShopper
Performance |
| Timeline |
| HyreCar |
| FlexShopper |
HyreCar and FlexShopper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HyreCar and FlexShopper
The main advantage of trading using opposite HyreCar and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HyreCar 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.| HyreCar vs. National Vision Holdings | HyreCar vs. Century Aluminum | HyreCar vs. Asbury Automotive Group | HyreCar vs. Valvoline |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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