Correlation Between Flux Power and TechPrecision Common

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

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

Diversification Opportunities for Flux Power and TechPrecision Common

0.1

Correlation Coefficient

Flux Power  TechPrecision Common

Average diversification

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

Pair Corralation between Flux Power and TechPrecision Common

Given the investment horizon of 90 days Flux Power Holdings is expected to generate 3.4 times more return on investment than TechPrecision Common. However, Flux Power is 3.4 times more volatile than TechPrecision Common. It trades about 0.05 of its potential returns per unit of risk. TechPrecision Common is currently generating about -0.03 per unit of risk. If you would invest  164.00  in Flux Power Holdings on August 26, 2025 and sell it today you would lose (12.00) from holding Flux Power Holdings or give up 7.32% of portfolio value over 90 days.

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

Flux Power Holdings  vs.  TechPrecision Common

Flux Power Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Flux Power Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Flux Power showed solid returns over the last few months and may actually be approaching a breakup point.

TechPrecision Common

Risk-Adjusted Performance

Weakest

Over the last 90 days TechPrecision Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Flux Power and TechPrecision Common

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

The idea behind Flux Power Holdings and TechPrecision Common 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.