Correlation Between FLT Old and Amdocs

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

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

Diversification Opportunities for FLT Old and Amdocs

0.0

Correlation Coefficient

FLT Old  Amdocs

Pay attention - limited upside

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

Pair Corralation between FLT Old and Amdocs

If you would invest  8,481  in Amdocs on December 28, 2024 and sell it today you would earn a total of  721.00  from holding Amdocs or generate 8.5% return on investment over 90 days.

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

FLT Old  vs.  Amdocs

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.

Amdocs

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amdocs are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Amdocs may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FLT Old and Amdocs

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

The idea behind FLT Old and Amdocs 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.