Correlation Between Flexible Solutions and Moog

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

By analyzing existing cross correlation between Flexible Solutions International and Moog Inc A, you can compare the effects of market volatilities on Flexible Solutions and Moog 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 Flexible Solutions with a short position of Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Moog.

Diversification Opportunities for Flexible Solutions and Moog

0.0

Correlation Coefficient

Flexible Solutions  Moog

Pay attention - limited upside

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

Pair Corralation between Flexible Solutions and Moog

If you would invest  315.00  in Flexible Solutions International on October 3, 2024 and sell it today you would earn a total of  46.00  from holding Flexible Solutions International or generate 14.6% return on investment over 90 days.

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

Flexible Solutions Internation  vs.  Moog Inc A

Flexible Solutions

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Flexible Solutions International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Flexible Solutions may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Moog Inc A

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Flexible Solutions and Moog

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

The idea behind Flexible Solutions International and Moog Inc A 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.