Correlation Between Advanced Emissions and Flexpoint Sensor
Can any of the company-specific risk be diversified away by investing in both Advanced Emissions and Flexpoint Sensor 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 Advanced Emissions and Flexpoint Sensor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Emissions Solutions and Flexpoint Sensor Systems, you can compare the effects of market volatilities on Advanced Emissions and Flexpoint Sensor 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 Advanced Emissions with a short position of Flexpoint Sensor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Emissions and Flexpoint Sensor.
Diversification Opportunities for Advanced Emissions and Flexpoint Sensor
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Advanced and Flexpoint is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Emissions Solutions and Flexpoint Sensor Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexpoint Sensor Systems and Advanced Emissions 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 Advanced Emissions Solutions are associated (or correlated) with Flexpoint Sensor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexpoint Sensor Systems has no effect on the direction of Advanced Emissions i.e., Advanced Emissions and Flexpoint Sensor go up and down completely randomly.
Pair Corralation between Advanced Emissions and Flexpoint Sensor
If you would invest 0.57 in Flexpoint Sensor Systems on January 20, 2024 and sell it today you would earn a total of 0.05 from holding Flexpoint Sensor Systems or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Advanced Emissions Solutions vs. Flexpoint Sensor Systems
Performance |
| Timeline |
| Advanced Emissions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Flexpoint Sensor Systems |
Advanced Emissions and Flexpoint Sensor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Emissions and Flexpoint Sensor
The main advantage of trading using opposite Advanced Emissions and Flexpoint Sensor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Emissions position performs unexpectedly, Flexpoint Sensor 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 Flexpoint Sensor will offset losses from the drop in Flexpoint Sensor's long position.| Advanced Emissions vs. Vow ASA | Advanced Emissions vs. Seychelle Environmtl | Advanced Emissions vs. Eestech | Advanced Emissions vs. Energy and Water |
| Flexpoint Sensor vs. Greenshift Corp | Flexpoint Sensor vs. Next Hydrogen Solutions | Flexpoint Sensor vs. Quality Industrial Corp | Flexpoint Sensor vs. Weir Group PLC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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