Correlation Between SEP Acquisition and Fluent
Can any of the company-specific risk be diversified away by investing in both SEP Acquisition and Fluent 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 SEP Acquisition and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEP Acquisition Corp and Fluent Inc, you can compare the effects of market volatilities on SEP Acquisition and Fluent 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 SEP Acquisition with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEP Acquisition and Fluent.
Diversification Opportunities for SEP Acquisition and Fluent
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEP and Fluent is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SEP Acquisition Corp and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and SEP Acquisition 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 SEP Acquisition Corp are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of SEP Acquisition i.e., SEP Acquisition and Fluent go up and down completely randomly.
Pair Corralation between SEP Acquisition and Fluent
Assuming the 90 days horizon SEP Acquisition Corp is expected to generate 0.83 times more return on investment than Fluent. However, SEP Acquisition Corp is 1.2 times less risky than Fluent. It trades about 0.03 of its potential returns per unit of risk. Fluent Inc is currently generating about 0.02 per unit of risk. If you would invest 975.00 in SEP Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 51.00 from holding SEP Acquisition Corp or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.08% |
| Values | Daily Returns |
SEP Acquisition Corp vs. Fluent Inc
Performance |
| Timeline |
| SEP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fluent Inc |
SEP Acquisition and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEP Acquisition and Fluent
The main advantage of trading using opposite SEP Acquisition and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEP Acquisition position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| SEP Acquisition vs. AMCON Distributing | SEP Acquisition vs. Acco Brands | SEP Acquisition vs. Skillful Craftsman Education | SEP Acquisition vs. John Wiley Sons |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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