Correlation Between Flux Power and Protective Life
Can any of the company-specific risk be diversified away by investing in both Flux Power and Protective Life 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 Flux Power and Protective Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flux Power Holdings and Protective Life Dynamic, you can compare the effects of market volatilities on Flux Power and Protective Life 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 Flux Power with a short position of Protective Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flux Power and Protective Life.
Diversification Opportunities for Flux Power and Protective Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flux and Protective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flux Power Holdings and PROTECTIVE LIFE DYNAMIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protective Life Dynamic and Flux Power 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 Flux Power Holdings are associated (or correlated) with Protective Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protective Life Dynamic has no effect on the direction of Flux Power i.e., Flux Power and Protective Life go up and down completely randomly.
Pair Corralation between Flux Power and Protective Life
If you would invest 254.00 in Flux Power Holdings on December 29, 2023 and sell it today you would earn a total of 181.00 from holding Flux Power Holdings or generate 71.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Flux Power Holdings vs. PROTECTIVE LIFE DYNAMIC
Performance |
Timeline |
Flux Power Holdings |
Protective Life Dynamic |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Flux Power and Protective Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flux Power and Protective Life
The main advantage of trading using opposite Flux Power and Protective Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flux Power position performs unexpectedly, Protective Life 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 Protective Life will offset losses from the drop in Protective Life's long position.Flux Power vs. Bloom Energy Corp | Flux Power vs. ADS TEC ENERGY PLC | Flux Power vs. Microvast Holdings | Flux Power vs. NeoVolta Common Stock |
Protective Life vs. Balanced Fund Retail | Protective Life vs. Semiconductors Portfolio Semiconductors | Protective Life vs. Sarofim Equity | Protective Life vs. Crossmark Steward Equity |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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