Correlation Between FlyExclusive, and ESGL Holdings

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

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

Diversification Opportunities for FlyExclusive, and ESGL Holdings

-0.23

Correlation Coefficient

FlyExclusive,  ESGL Holdings

Very good diversification

The 3 months correlation between FlyExclusive, and ESGL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited and FlyExclusive, 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 flyExclusive, are associated (or correlated) with ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and ESGL Holdings go up and down completely randomly.

Pair Corralation between FlyExclusive, and ESGL Holdings

Given the investment horizon of 90 days flyExclusive, is expected to generate 0.38 times more return on investment than ESGL Holdings. However, flyExclusive, is 2.62 times less risky than ESGL Holdings. It trades about 0.14 of its potential returns per unit of risk. ESGL Holdings Limited is currently generating about -0.03 per unit of risk. If you would invest  238.00  in flyExclusive, on October 25, 2024 and sell it today you would earn a total of  75.00  from holding flyExclusive, or generate 31.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

flyExclusive,  vs.  ESGL Holdings Limited

flyExclusive,

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in flyExclusive, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, FlyExclusive, showed solid returns over the last few months and may actually be approaching a breakup point.

ESGL Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ESGL Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with FlyExclusive, and ESGL Holdings

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

The idea behind flyExclusive, and ESGL Holdings Limited 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.