Correlation Between Flexible Solutions and Serina Therapeutics

Can any of the company-specific risk be diversified away by investing in both Flexible Solutions and Serina Therapeutics 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 Serina Therapeutics 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 Serina Therapeutics, you can compare the effects of market volatilities on Flexible Solutions and Serina Therapeutics 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 Serina Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Serina Therapeutics.

Diversification Opportunities for Flexible Solutions and Serina Therapeutics

-0.44

Correlation Coefficient

Flexible Solutions  Serina Therapeutics

Very good diversification

The 3 months correlation between Flexible and Serina is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Serina Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serina Therapeutics 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 Serina Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serina Therapeutics has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and Serina Therapeutics go up and down completely randomly.

Pair Corralation between Flexible Solutions and Serina Therapeutics

Considering the 90-day investment horizon Flexible Solutions International is expected to generate 2.31 times more return on investment than Serina Therapeutics. However, Flexible Solutions is 2.31 times more volatile than Serina Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Serina Therapeutics is currently generating about -0.02 per unit of risk. If you would invest  356.00  in Flexible Solutions International on December 25, 2024 and sell it today you would earn a total of  165.00  from holding Flexible Solutions International or generate 46.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Flexible Solutions Internation  vs.  Serina Therapeutics

Flexible Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flexible Solutions International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Flexible Solutions demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Serina Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Serina Therapeutics is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Flexible Solutions and Serina Therapeutics

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

The idea behind Flexible Solutions International and Serina Therapeutics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..