Correlation Between Celestica and Fluent
Can any of the company-specific risk be diversified away by investing in both Celestica and Fluent 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 Celestica and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Fluent Inc, you can compare the effects of market volatilities on Celestica and Fluent 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 Celestica with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Fluent.
Diversification Opportunities for Celestica and Fluent
Excellent diversification
The 3 months correlation between Celestica and Fluent is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Celestica 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 Celestica are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Celestica i.e., Celestica and Fluent go up and down completely randomly.
Pair Corralation between Celestica and Fluent
Considering the 90-day investment horizon Celestica is expected to generate 0.99 times more return on investment than Fluent. However, Celestica is 1.01 times less risky than Fluent. It trades about 0.26 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.01 per unit of risk. If you would invest 8,800 in Celestica on October 11, 2024 and sell it today you would earn a total of 1,447 from holding Celestica or generate 16.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Celestica vs. Fluent Inc
Performance |
Timeline |
Celestica |
Fluent Inc |
Celestica and Fluent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celestica and Fluent
The main advantage of trading using opposite Celestica and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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