Correlation Between FlexQube and Volati AB

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

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

Diversification Opportunities for FlexQube and Volati AB

-0.55

Correlation Coefficient

FlexQube  Volati AB

Excellent diversification

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

Pair Corralation between FlexQube and Volati AB

Assuming the 90 days trading horizon FlexQube AB is expected to generate 2.74 times more return on investment than Volati AB. However, FlexQube is 2.74 times more volatile than Volati AB. It trades about 0.04 of its potential returns per unit of risk. Volati AB is currently generating about -0.03 per unit of risk. If you would invest  698.00  in FlexQube AB on April 24, 2025 and sell it today you would earn a total of  32.00  from holding FlexQube AB or generate 4.58% return on investment over 90 days.

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

FlexQube AB  vs.  Volati AB

FlexQube AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FlexQube AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, FlexQube unveiled solid returns over the last few months and may actually be approaching a breakup point.

Volati AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volati AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Volati AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FlexQube and Volati AB

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

The idea behind FlexQube AB and Volati 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.