Correlation Between Flexion Mobile and AcadeMedia

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

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

Diversification Opportunities for Flexion Mobile and AcadeMedia

0.55

Correlation Coefficient

Flexion Mobile  AcadeMedia

Very weak diversification

The 3 months correlation between Flexion and AcadeMedia is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and Flexion Mobile 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 Flexion Mobile PLC are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and AcadeMedia go up and down completely randomly.

Pair Corralation between Flexion Mobile and AcadeMedia

Assuming the 90 days trading horizon Flexion Mobile PLC is expected to generate 1.9 times more return on investment than AcadeMedia. However, Flexion Mobile is 1.9 times more volatile than AcadeMedia AB. It trades about 0.11 of its potential returns per unit of risk. AcadeMedia AB is currently generating about 0.08 per unit of risk. 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	Weak
Accuracy	100.0%
Values	Daily Returns

Flexion Mobile PLC  vs.  AcadeMedia AB

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.

AcadeMedia AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AcadeMedia AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AcadeMedia may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Flexion Mobile and AcadeMedia

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

The idea behind Flexion Mobile PLC and AcadeMedia AB 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.