Correlation Between FlexiInternational and GuestLogix

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

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

Diversification Opportunities for FlexiInternational and GuestLogix

0.0

Correlation Coefficient

FlexiInternational  GuestLogix

Pay attention - limited upside

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

Pair Corralation between FlexiInternational and GuestLogix

If you would invest  42.00  in FlexiInternational Software on October 11, 2024 and sell it today you would earn a total of  15.00  from holding FlexiInternational Software or generate 35.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FlexiInternational Software  vs.  GuestLogix

FlexiInternational

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FlexiInternational Software are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, FlexiInternational demonstrated solid returns over the last few months and may actually be approaching a breakup point.

GuestLogix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GuestLogix has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GuestLogix is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FlexiInternational and GuestLogix

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

The idea behind FlexiInternational Software and GuestLogix 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.