Correlation Between FlexiInternational and IPE Universal

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

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

Diversification Opportunities for FlexiInternational and IPE Universal

-0.41

Correlation Coefficient

FlexiInternational  IPE Universal

Very good diversification

The 3 months correlation between FlexiInternational and IPE is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding FlexiInternational Software and IPE Universal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPE Universal 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 IPE Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPE Universal has no effect on the direction of FlexiInternational i.e., FlexiInternational and IPE Universal go up and down completely randomly.

Pair Corralation between FlexiInternational and IPE Universal

Given the investment horizon of 90 days FlexiInternational Software is expected to generate 0.62 times more return on investment than IPE Universal. However, FlexiInternational Software is 1.62 times less risky than IPE Universal. It trades about 0.22 of its potential returns per unit of risk. IPE Universal is currently generating about -0.09 per unit of risk. 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	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

FlexiInternational Software  vs.  IPE Universal

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.

IPE Universal

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with FlexiInternational and IPE Universal

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

The idea behind FlexiInternational Software and IPE Universal 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.