Correlation Between Flexium Interconnect and Acbel Polytech

Can any of the company-specific risk be diversified away by investing in both Flexium Interconnect and Acbel Polytech 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 Flexium Interconnect and Acbel Polytech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flexium Interconnect and Acbel Polytech, you can compare the effects of market volatilities on Flexium Interconnect and Acbel Polytech 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 Flexium Interconnect with a short position of Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexium Interconnect and Acbel Polytech.

Diversification Opportunities for Flexium Interconnect and Acbel Polytech

0.74

Correlation Coefficient

Flexium Interconnect  Acbel Polytech

Poor diversification

The 3 months correlation between Flexium and Acbel is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Flexium Interconnect and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech and Flexium Interconnect 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 Flexium Interconnect are associated (or correlated) with Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Flexium Interconnect i.e., Flexium Interconnect and Acbel Polytech go up and down completely randomly.

Pair Corralation between Flexium Interconnect and Acbel Polytech

Assuming the 90 days trading horizon Flexium Interconnect is expected to under-perform the Acbel Polytech. In addition to that, Flexium Interconnect is 1.48 times more volatile than Acbel Polytech. It trades about 0.0 of its total potential returns per unit of risk. Acbel Polytech is currently generating about 0.08 per unit of volatility. If you would invest  3,060  in Acbel Polytech on December 23, 2024 and sell it today you would earn a total of  190.00  from holding Acbel Polytech or generate 6.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Flexium Interconnect  vs.  Acbel Polytech

Flexium Interconnect

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flexium Interconnect has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Flexium Interconnect is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Acbel Polytech

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Acbel Polytech are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Acbel Polytech may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Flexium Interconnect and Acbel Polytech

The main advantage of trading using opposite Flexium Interconnect and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexium Interconnect position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech's long position.

The idea behind Flexium Interconnect and Acbel Polytech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.