Correlation Between Flexible Solutions and Benefytt Technologies

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

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

Diversification Opportunities for Flexible Solutions and Benefytt Technologies

0.0

Correlation Coefficient

Flexible Solutions  Benefytt Technologies

Pay attention - limited upside

The 3 months correlation between Flexible and Benefytt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Benefytt Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benefytt Technologies and Flexible Solutions 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 Flexible Solutions International are associated (or correlated) with Benefytt Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benefytt Technologies has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and Benefytt Technologies go up and down completely randomly.

Pair Corralation between Flexible Solutions and Benefytt Technologies

If you would invest  190.00  in Flexible Solutions International on February 1, 2024 and sell it today you would earn a total of  23.00  from holding Flexible Solutions International or generate 12.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

Flexible Solutions Internation  vs.  Benefytt Technologies

Flexible Solutions

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Flexible Solutions International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Flexible Solutions demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Benefytt Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Benefytt Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Benefytt Technologies is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Flexible Solutions and Benefytt Technologies

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

The idea behind Flexible Solutions International and Benefytt Technologies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.