Correlation Between Fluent and SRAX

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

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

Diversification Opportunities for Fluent and SRAX

-0.1

Correlation Coefficient

Fluent  SRAX

Good diversification

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

Pair Corralation between Fluent and SRAX

If you would invest  60.00  in SRAX Inc on September 13, 2024 and sell it today you would earn a total of  0.00  from holding SRAX Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.4%
Values	Daily Returns

Fluent Inc  vs.  SRAX Inc

Fluent Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fluent Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Fluent may actually be approaching a critical reversion point that can send shares even higher in January 2025.

SRAX Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SRAX Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, SRAX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fluent and SRAX

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

The idea behind Fluent Inc and SRAX Inc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.