Correlation Between GuestLogix and FlexiInternational

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

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

Diversification Opportunities for GuestLogix and FlexiInternational

0.0

Correlation Coefficient

GuestLogix  FlexiInternational

Pay attention - limited upside

The 3 months correlation between GuestLogix and FlexiInternational is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GuestLogix and FlexiInternational Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexiInternational and GuestLogix 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 GuestLogix 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 GuestLogix i.e., GuestLogix and FlexiInternational go up and down completely randomly.

Pair Corralation between GuestLogix and FlexiInternational

If you would invest  52.00  in FlexiInternational Software on December 26, 2024 and sell it today you would earn a total of  5.00  from holding FlexiInternational Software or generate 9.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	36.67%
Values	Daily Returns

GuestLogix  vs.  FlexiInternational Software

GuestLogix

Risk-Adjusted Performance

Very Weak

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

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 GuestLogix and FlexiInternational

The main advantage of trading using opposite GuestLogix and FlexiInternational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuestLogix 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 GuestLogix 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..