Correlation Between Beowulf Mining and Flexion Mobile

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

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

Diversification Opportunities for Beowulf Mining and Flexion Mobile

0.06

Correlation Coefficient

Beowulf Mining  Flexion Mobile

Significant diversification

The 3 months correlation between Beowulf and Flexion is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining PLC and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC and Beowulf Mining 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 Beowulf Mining PLC are associated (or correlated) with Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Flexion Mobile go up and down completely randomly.

Pair Corralation between Beowulf Mining and Flexion Mobile

Assuming the 90 days trading horizon Beowulf Mining PLC is expected to under-perform the Flexion Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Beowulf Mining PLC is 1.24 times less risky than Flexion Mobile. The stock trades about -0.03 of its potential returns per unit of risk. The Flexion Mobile PLC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  542.00  in Flexion Mobile PLC on April 23, 2025 and sell it today you would earn a total of  138.00  from holding Flexion Mobile PLC or generate 25.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beowulf Mining PLC  vs.  Flexion Mobile PLC

Beowulf Mining PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beowulf Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Beowulf Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Flexion Mobile PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flexion Mobile PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flexion Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Beowulf Mining and Flexion Mobile

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

The idea behind Beowulf Mining PLC and Flexion Mobile PLC 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.