Correlation Between Evertec and FLT Old

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

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

Diversification Opportunities for Evertec and FLT Old

0.0

Correlation Coefficient

Evertec  FLT Old

Pay attention - limited upside

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

Pair Corralation between Evertec and FLT Old

If you would invest  3,427  in Evertec on December 29, 2024 and sell it today you would earn a total of  238.00  from holding Evertec or generate 6.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evertec  vs.  FLT Old

Evertec

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Evertec are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Evertec may actually be approaching a critical reversion point that can send shares even higher in April 2025.

FLT Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Evertec and FLT Old

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

The idea behind Evertec and FLT Old 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.