Correlation Between Fluent and Securitas
Can any of the company-specific risk be diversified away by investing in both Fluent and Securitas 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 Securitas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Securitas AB, you can compare the effects of market volatilities on Fluent and Securitas 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 Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Securitas.
Diversification Opportunities for Fluent and Securitas
Excellent diversification
The 3 months correlation between Fluent and Securitas is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB 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 Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Fluent i.e., Fluent and Securitas go up and down completely randomly.
Pair Corralation between Fluent and Securitas
If you would invest 1,285 in Securitas AB on September 26, 2024 and sell it today you would earn a total of 0.00 from holding Securitas AB or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.76% |
Values | Daily Returns |
Fluent Inc vs. Securitas AB
Performance |
Timeline |
Fluent Inc |
Securitas AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Fluent and Securitas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fluent and Securitas
The main advantage of trading using opposite Fluent and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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