Correlation Between Bird Global and FlexShopper
Can any of the company-specific risk be diversified away by investing in both Bird Global and FlexShopper 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 Bird Global and FlexShopper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bird Global and FlexShopper, you can compare the effects of market volatilities on Bird Global and FlexShopper 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 Bird Global with a short position of FlexShopper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bird Global and FlexShopper.
Diversification Opportunities for Bird Global and FlexShopper
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bird and FlexShopper is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bird Global and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and Bird Global 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 Bird Global are associated (or correlated) with FlexShopper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShopper has no effect on the direction of Bird Global i.e., Bird Global and FlexShopper go up and down completely randomly.
Pair Corralation between Bird Global and FlexShopper
Given the investment horizon of 90 days Bird Global is expected to under-perform the FlexShopper. In addition to that, Bird Global is 1.96 times more volatile than FlexShopper. It trades about -0.06 of its total potential returns per unit of risk. FlexShopper is currently generating about 0.02 per unit of volatility. If you would invest 155.00 in FlexShopper on December 29, 2023 and sell it today you would lose (18.00) from holding FlexShopper or give up 11.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.14% |
Values | Daily Returns |
Bird Global vs. FlexShopper
Performance |
Timeline |
Bird Global |
Risk-Adjusted Performance
0 of 100
Low | High |
OK
FlexShopper |
Bird Global and FlexShopper Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bird Global and FlexShopper
The main advantage of trading using opposite Bird Global and FlexShopper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bird Global position performs unexpectedly, FlexShopper 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 FlexShopper will offset losses from the drop in FlexShopper's long position.Bird Global vs. Artisan Consumer Goods | Bird Global vs. Torm PLC Class | Bird Global vs. Yuexiu Transport Infrastructure | Bird Global vs. Apogee Enterprises |
FlexShopper vs. Ryder System | FlexShopper vs. Air Lease | FlexShopper vs. Vestis | FlexShopper vs. Triton International Limited |
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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