Correlation Between Flexion Mobile and Asker Healthcare

Can any of the company-specific risk be diversified away by investing in both Flexion Mobile and Asker Healthcare 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 Asker Healthcare 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 Asker Healthcare, you can compare the effects of market volatilities on Flexion Mobile and Asker Healthcare 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 Asker Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexion Mobile and Asker Healthcare.

Diversification Opportunities for Flexion Mobile and Asker Healthcare

-0.1

Correlation Coefficient

Flexion Mobile  Asker Healthcare

Good diversification

The 3 months correlation between Flexion and Asker is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Asker Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asker Healthcare 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 Asker Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asker Healthcare has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Asker Healthcare go up and down completely randomly.

Pair Corralation between Flexion Mobile and Asker Healthcare

Assuming the 90 days trading horizon Flexion Mobile is expected to generate 1.42 times less return on investment than Asker Healthcare. In addition to that, Flexion Mobile is 1.63 times more volatile than Asker Healthcare. It trades about 0.09 of its total potential returns per unit of risk. Asker Healthcare is currently generating about 0.21 per unit of volatility. If you would invest  9,414  in Asker Healthcare on April 22, 2025 and sell it today you would earn a total of  3,334  from holding Asker Healthcare or generate 35.42% return on investment over 90 days.

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

Flexion Mobile PLC  vs.  Asker Healthcare

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 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Flexion Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

Asker Healthcare

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Asker Healthcare are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Asker Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flexion Mobile and Asker Healthcare

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

The idea behind Flexion Mobile PLC and Asker Healthcare 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.