Correlation Between Know Labs and FlexShopper
Can any of the company-specific risk be diversified away by investing in both Know Labs 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 Know Labs and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Know Labs and FlexShopper, you can compare the effects of market volatilities on Know Labs 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 Know Labs with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know Labs and FlexShopper.
Diversification Opportunities for Know Labs and FlexShopper
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Know and FlexShopper is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Know Labs and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and Know Labs 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 Know Labs 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 Know Labs i.e., Know Labs and FlexShopper go up and down completely randomly.
Pair Corralation between Know Labs and FlexShopper
Considering the 90-day investment horizon Know Labs is expected to under-perform the FlexShopper. In addition to that, Know Labs is 1.5 times more volatile than FlexShopper. It trades about -0.02 of its total potential returns per unit of risk. FlexShopper is currently generating about 0.04 per unit of volatility. If you would invest 143.00 in FlexShopper on August 28, 2024 and sell it today you would earn a total of 34.00 from holding FlexShopper or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Know Labs vs. FlexShopper
Performance |
| Timeline |
| Know Labs |
| FlexShopper |
Know Labs and FlexShopper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Know Labs and FlexShopper
The main advantage of trading using opposite Know Labs and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know Labs 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.| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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