Correlation Between Flowserve and Nuburu

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

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

Diversification Opportunities for Flowserve and Nuburu

0.33

Correlation Coefficient

Flowserve  Nuburu

Weak diversification

The 3 months correlation between Flowserve and Nuburu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Flowserve and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc and Flowserve 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 Flowserve are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Flowserve i.e., Flowserve and Nuburu go up and down completely randomly.

Pair Corralation between Flowserve and Nuburu

Considering the 90-day investment horizon Flowserve is expected to generate 0.15 times more return on investment than Nuburu. However, Flowserve is 6.61 times less risky than Nuburu. It trades about -0.08 of its potential returns per unit of risk. Nuburu Inc is currently generating about -0.02 per unit of risk. If you would invest  5,785  in Flowserve on December 20, 2024 and sell it today you would lose (654.00) from holding Flowserve or give up 11.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Flowserve  vs.  Nuburu Inc

Flowserve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flowserve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Nuburu Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuburu 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Flowserve and Nuburu

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

The idea behind Flowserve and Nuburu Inc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.