Correlation Between Fluent and Dover Downs

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

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

Diversification Opportunities for Fluent and Dover Downs

0.0

Correlation Coefficient

Fluent  Dover Downs

Pay attention - limited upside

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

Pair Corralation between Fluent and Dover Downs

If you would invest (100.00) in Dover Downs Gaming on September 27, 2024 and sell it today you would earn a total of  100.00  from holding Dover Downs Gaming or generate -100.0% return on investment over 90 days.

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

Fluent Inc  vs.  Dover Downs Gaming

Fluent Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dover Downs Gaming

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dover Downs Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Dover Downs is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fluent and Dover Downs

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

The idea behind Fluent Inc and Dover Downs Gaming 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.