Correlation Between FlexShopper and AZN Capital

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

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

Diversification Opportunities for FlexShopper and AZN Capital

0.0

Correlation Coefficient

FlexShopper  AZN Capital

Pay attention - limited upside

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

Pair Corralation between FlexShopper and AZN Capital

If you would invest  0.00  in AZN Capital Corp on December 29, 2024 and sell it today you would earn a total of  0.00  from holding AZN Capital Corp or generate 0.0% return on investment over 90 days.

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

FlexShopper  vs.  AZN Capital Corp

FlexShopper

Risk-Adjusted Performance

Very Weak

Over the last 90 days FlexShopper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

AZN Capital Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with FlexShopper and AZN Capital

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

The idea behind FlexShopper and AZN Capital Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..