Correlation Between Flinders Resources and Imaflex
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Flinders Resources Limited vs. Imaflex
Performance |
Timeline |
Flinders Resources |
Imaflex |
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.Flinders Resources vs. Dream Office Real | Flinders Resources vs. GoldQuest Mining Corp | Flinders Resources vs. Precious Metals And | Flinders Resources vs. Altair Resources |
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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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