Correlation Between Flinders Resources and Imaflex

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Can any of the company-specific risk be diversified away by investing in both Flinders Resources and Imaflex 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 Flinders Resources and Imaflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flinders Resources Limited and Imaflex, you can compare the effects of market volatilities on Flinders Resources and Imaflex 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 Flinders Resources with a short position of Imaflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Imaflex.

Diversification Opportunities for Flinders Resources and Imaflex

-0.33
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Flinders Resources and Imaflex

Assuming the 90 days horizon Flinders Resources Limited is expected to under-perform the Imaflex. In addition to that, Flinders Resources is 1.28 times more volatile than Imaflex. It trades about -0.08 of its total potential returns per unit of risk. Imaflex is currently generating about 0.08 per unit of volatility. If you would invest  114.00  in Imaflex on April 24, 2025 and sell it today you would earn a total of  16.00  from holding Imaflex or generate 14.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Flinders Resources Limited  vs.  Imaflex

 Performance 
       Timeline  
Flinders Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Flinders Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Imaflex 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Imaflex are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Imaflex showed solid returns over the last few months and may actually be approaching a breakup point.

Flinders Resources and Imaflex Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Flinders Resources and Imaflex

The main advantage of trading using opposite Flinders Resources and Imaflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, Imaflex 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 Imaflex will offset losses from the drop in Imaflex's long position.
The idea behind Flinders Resources Limited and Imaflex 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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