Correlation Between Sinch AB and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both Sinch AB and Flexion Mobile 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 Sinch AB and Flexion Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Flexion Mobile PLC, you can compare the effects of market volatilities on Sinch AB and Flexion Mobile 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 Sinch AB with a short position of Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Flexion Mobile.
Diversification Opportunities for Sinch AB and Flexion Mobile
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinch and Flexion is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sinch AB and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and Sinch AB 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 Sinch AB are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of Sinch AB i.e., Sinch AB and Flexion Mobile go up and down completely randomly.
Pair Corralation between Sinch AB and Flexion Mobile
Assuming the 90 days trading horizon Sinch AB is expected to under-perform the Flexion Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Sinch AB is 1.14 times less risky than Flexion Mobile. The stock trades about -0.03 of its potential returns per unit of risk. The Flexion Mobile PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 742.00 in Flexion Mobile PLC on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Flexion Mobile PLC or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinch AB vs. Flexion Mobile PLC
Performance |
| Timeline |
| Sinch AB |
| Flexion Mobile PLC |
Sinch AB and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinch AB and Flexion Mobile
The main advantage of trading using opposite Sinch AB and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.| Sinch AB vs. Embracer Group AB | Sinch AB vs. Samhllsbyggnadsbolaget i Norden | Sinch AB vs. Evolution AB | Sinch AB vs. Stillfront Group AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |