Correlation Between GivBux and FlexiInternational

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

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

Diversification Opportunities for GivBux and FlexiInternational

0.33

Correlation Coefficient

GivBux  FlexiInternational

Weak diversification

The 3 months correlation between GivBux and FlexiInternational is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and FlexiInternational Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexiInternational and GivBux 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 GivBux Inc are associated (or correlated) with FlexiInternational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexiInternational has no effect on the direction of GivBux i.e., GivBux and FlexiInternational go up and down completely randomly.

Pair Corralation between GivBux and FlexiInternational

Given the investment horizon of 90 days GivBux Inc is expected to generate 6.0 times more return on investment than FlexiInternational. However, GivBux is 6.0 times more volatile than FlexiInternational Software. It trades about 0.17 of its potential returns per unit of risk. FlexiInternational Software is currently generating about 0.3 per unit of risk. If you would invest  121.00  in GivBux Inc on December 24, 2024 and sell it today you would earn a total of  211.00  from holding GivBux Inc or generate 174.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	36.51%
Values	Daily Returns

GivBux Inc  vs.  FlexiInternational Software

GivBux Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

FlexiInternational

Risk-Adjusted Performance

Solid

Over the last 90 days FlexiInternational Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly abnormal basic indicators, FlexiInternational demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GivBux and FlexiInternational

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

The idea behind GivBux Inc and FlexiInternational Software 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.