Correlation Between FlexShopper and Bird Global

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

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

Diversification Opportunities for FlexShopper and Bird Global

0.0

Correlation Coefficient

FlexShopper  Bird Global

Pay attention - limited upside

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

Pair Corralation between FlexShopper and Bird Global

If you would invest (100.00) in Bird Global on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Bird Global or generate -100.0% return on investment over 90 days.

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

FlexShopper  vs.  Bird Global

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.

Bird Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bird Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Bird Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FlexShopper and Bird Global

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

The idea behind FlexShopper and Bird Global 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.