Correlation Between Elong Power and Flux Power
Can any of the company-specific risk be diversified away by investing in both Elong Power 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 Elong Power and Flux Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elong Power Holding and Flux Power Holdings, you can compare the effects of market volatilities on Elong Power 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 Elong Power with a short position of Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elong Power and Flux Power.
Diversification Opportunities for Elong Power and Flux Power
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elong and Flux is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Elong Power Holding 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 Elong 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 Elong Power Holding 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 Elong Power i.e., Elong Power and Flux Power go up and down completely randomly.
Pair Corralation between Elong Power and Flux Power
Given the investment horizon of 90 days Elong Power Holding is expected to under-perform the Flux Power. In addition to that, Elong Power is 1.46 times more volatile than Flux Power Holdings. It trades about -0.38 of its total potential returns per unit of risk. Flux Power Holdings is currently generating about -0.34 per unit of volatility. If you would invest 175.00 in Flux Power Holdings on December 5, 2024 and sell it today you would lose (46.00) from holding Flux Power Holdings or give up 26.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Elong Power Holding vs. Flux Power Holdings
Performance |
Timeline |
Elong Power Holding |
Flux Power Holdings |
Elong Power and Flux Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Elong Power and Flux Power
The main advantage of trading using opposite Elong Power and Flux Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elong Power 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.Elong Power vs. Insteel Industries | Elong Power vs. Gfl Environmental Holdings | Elong Power vs. Tianjin Capital Environmental | Elong Power vs. Acumen Pharmaceuticals |
Flux Power vs. Espey Mfg Electronics | Flux Power vs. NeoVolta Warrant | Flux Power vs. Kimball Electronics | Flux Power vs. Hayward Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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