Correlation Between Janone and FlexShopper

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

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

Diversification Opportunities for Janone and FlexShopper

-0.63

Correlation Coefficient

Janone  FlexShopper

Excellent diversification

The 3 months correlation between Janone and FlexShopper is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Janone Inc and FlexShopper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FlexShopper and Janone 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 Janone Inc are associated (or correlated) with FlexShopper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FlexShopper has no effect on the direction of Janone i.e., Janone and FlexShopper go up and down completely randomly.

Pair Corralation between Janone and FlexShopper

Considering the 90-day investment horizon Janone Inc is expected to under-perform the FlexShopper. In addition to that, Janone is 7.26 times more volatile than FlexShopper. It trades about -0.29 of its total potential returns per unit of risk. FlexShopper is currently generating about 0.05 per unit of volatility. If you would invest  127.00  in FlexShopper on September 29, 2024 and sell it today you would earn a total of  23.00  from holding FlexShopper or generate 18.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	7.94%
Values	Daily Returns

Janone Inc  vs.  FlexShopper

Janone Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janone Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Janone is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

FlexShopper

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FlexShopper are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, FlexShopper showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Janone and FlexShopper

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

The idea behind Janone Inc and FlexShopper 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.