Correlation Between CAP LEASE and Flowtech Fluidpower

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

By analyzing existing cross correlation between CAP LEASE AVIATION and Flowtech Fluidpower plc, you can compare the effects of market volatilities on CAP LEASE and Flowtech Fluidpower 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 CAP LEASE with a short position of Flowtech Fluidpower. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Flowtech Fluidpower.

Diversification Opportunities for CAP LEASE and Flowtech Fluidpower

0.0

Correlation Coefficient

CAP LEASE  Flowtech Fluidpower

Pay attention - limited upside

The 3 months correlation between CAP and Flowtech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION and Flowtech Fluidpower plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowtech Fluidpower plc and CAP LEASE 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 CAP LEASE AVIATION are associated (or correlated) with Flowtech Fluidpower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowtech Fluidpower plc has no effect on the direction of CAP LEASE i.e., CAP LEASE and Flowtech Fluidpower go up and down completely randomly.

Pair Corralation between CAP LEASE and Flowtech Fluidpower

If you would invest  5,460  in Flowtech Fluidpower plc on April 24, 2025 and sell it today you would earn a total of  540.00  from holding Flowtech Fluidpower plc or generate 9.89% return on investment over 90 days.

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

CAP LEASE AVIATION  vs.  Flowtech Fluidpower plc

CAP LEASE AVIATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAP LEASE AVIATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CAP LEASE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Flowtech Fluidpower plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flowtech Fluidpower plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Flowtech Fluidpower may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CAP LEASE and Flowtech Fluidpower

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

The idea behind CAP LEASE AVIATION and Flowtech Fluidpower 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.