Correlation Between Flushing Financial and AB Volvo

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

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

Diversification Opportunities for Flushing Financial and AB Volvo

0.01

Correlation Coefficient

Flushing Financial  AB Volvo

Significant diversification

The 3 months correlation between Flushing and VOLAF is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Flushing Financial and AB Volvo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Volvo and Flushing Financial 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 Flushing Financial are associated (or correlated) with AB Volvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Volvo has no effect on the direction of Flushing Financial i.e., Flushing Financial and AB Volvo go up and down completely randomly.

Pair Corralation between Flushing Financial and AB Volvo

Given the investment horizon of 90 days Flushing Financial is expected to generate 52.45 times more return on investment than AB Volvo. However, Flushing Financial is 52.45 times more volatile than AB Volvo. It trades about 0.1 of its potential returns per unit of risk. AB Volvo is currently generating about 0.17 per unit of risk. If you would invest  1,240  in Flushing Financial on July 5, 2025 and sell it today you would earn a total of  121.00  from holding Flushing Financial or generate 9.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	56.25%
Values	Daily Returns

Flushing Financial  vs.  AB Volvo

Flushing Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Flushing Financial are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Flushing Financial may actually be approaching a critical reversion point that can send shares even higher in November 2025.

AB Volvo

Risk-Adjusted Performance

Good

Over the last 90 days AB Volvo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AB Volvo is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Flushing Financial and AB Volvo

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

The idea behind Flushing Financial and AB Volvo 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.

Check out your portfolio center.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.