Correlation Between Flexsteel Industries and Libbey
Can any of the company-specific risk be diversified away by investing in both Flexsteel Industries and Libbey 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 Flexsteel Industries and Libbey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexsteel Industries and Libbey Inc, you can compare the effects of market volatilities on Flexsteel Industries and Libbey 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 Flexsteel Industries with a short position of Libbey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexsteel Industries and Libbey.
Diversification Opportunities for Flexsteel Industries and Libbey
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flexsteel and Libbey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flexsteel Industries and Libbey Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libbey Inc and Flexsteel Industries 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 Flexsteel Industries are associated (or correlated) with Libbey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libbey Inc has no effect on the direction of Flexsteel Industries i.e., Flexsteel Industries and Libbey go up and down completely randomly.
Pair Corralation between Flexsteel Industries and Libbey
If you would invest 1,819 in Flexsteel Industries on February 7, 2024 and sell it today you would earn a total of 1,890 from holding Flexsteel Industries or generate 103.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Flexsteel Industries vs. Libbey Inc
Performance |
| Timeline |
| Flexsteel Industries |
| Libbey Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flexsteel Industries and Libbey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexsteel Industries and Libbey
The main advantage of trading using opposite Flexsteel Industries and Libbey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexsteel Industries position performs unexpectedly, Libbey 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 Libbey will offset losses from the drop in Libbey's long position.| Flexsteel Industries vs. Purple Innovation | Flexsteel Industries vs. MasterBrand | Flexsteel Industries vs. Sleep Number Corp | Flexsteel Industries vs. Traeger |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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