Correlation Between Dais Analytic and Flux Power

Can any of the company-specific risk be diversified away by investing in both Dais Analytic and Flux Power 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 Dais Analytic and Flux Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dais Analytic Corp and Flux Power Holdings, you can compare the effects of market volatilities on Dais Analytic and Flux Power 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 Dais Analytic with a short position of Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dais Analytic and Flux Power.

Diversification Opportunities for Dais Analytic and Flux Power

0.0

Correlation Coefficient

Dais Analytic  Flux Power

Pay attention - limited upside

The 3 months correlation between Dais and Flux is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dais Analytic Corp and Flux Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flux Power Holdings and Dais Analytic 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 Dais Analytic Corp are associated (or correlated) with Flux Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flux Power Holdings has no effect on the direction of Dais Analytic i.e., Dais Analytic and Flux Power go up and down completely randomly.

Pair Corralation between Dais Analytic and Flux Power

If you would invest  158.00  in Flux Power Holdings on December 18, 2024 and sell it today you would earn a total of  24.00  from holding Flux Power Holdings or generate 15.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Dais Analytic Corp  vs.  Flux Power Holdings

Dais Analytic Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dais Analytic Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dais Analytic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Flux Power Holdings

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Flux Power Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Flux Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dais Analytic and Flux Power

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

The idea behind Dais Analytic Corp and Flux Power Holdings 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.