Correlation Between Flexion Mobile and Paradox Interactive

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

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

Diversification Opportunities for Flexion Mobile and Paradox Interactive

-0.49

Correlation Coefficient

Flexion Mobile  Paradox Interactive

Very good diversification

The 3 months correlation between Flexion and Paradox is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Flexion Mobile PLC and Paradox Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradox Interactive and Flexion Mobile 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 Flexion Mobile PLC are associated (or correlated) with Paradox Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradox Interactive has no effect on the direction of Flexion Mobile i.e., Flexion Mobile and Paradox Interactive go up and down completely randomly.

Pair Corralation between Flexion Mobile and Paradox Interactive

Assuming the 90 days trading horizon Flexion Mobile PLC is expected to generate 1.91 times more return on investment than Paradox Interactive. However, Flexion Mobile is 1.91 times more volatile than Paradox Interactive AB. It trades about 0.07 of its potential returns per unit of risk. Paradox Interactive AB is currently generating about -0.13 per unit of risk. If you would invest  528.00  in Flexion Mobile PLC on May 13, 2025 and sell it today you would earn a total of  70.00  from holding Flexion Mobile PLC or generate 13.26% return on investment over 90 days.

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

Flexion Mobile PLC  vs.  Paradox Interactive AB

Flexion Mobile PLC

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Flexion Mobile PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flexion Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

Paradox Interactive

Risk-Adjusted Performance

Weakest

Over the last 90 days Paradox Interactive AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Flexion Mobile and Paradox Interactive

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

The idea behind Flexion Mobile PLC and Paradox Interactive 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.