Correlation Between Fluence and Vow ASA

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Can any of the company-specific risk be diversified away by investing in both Fluence and Vow ASA 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 Fluence and Vow ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Limited and Vow ASA, you can compare the effects of market volatilities on Fluence and Vow ASA 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 Fluence with a short position of Vow ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence and Vow ASA.

Diversification Opportunities for Fluence and Vow ASA

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Fluence and Vow is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Limited and Vow ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vow ASA and Fluence 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 Fluence Limited are associated (or correlated) with Vow ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vow ASA has no effect on the direction of Fluence i.e., Fluence and Vow ASA go up and down completely randomly.

Pair Corralation between Fluence and Vow ASA

If you would invest  5.20  in Fluence Limited on August 9, 2025 and sell it today you would earn a total of  2.80  from holding Fluence Limited or generate 53.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

Fluence Limited  vs.  Vow ASA

 Performance 
       Timeline  
Fluence Limited 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fluence Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Fluence reported solid returns over the last few months and may actually be approaching a breakup point.
Vow ASA 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vow ASA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Vow ASA reported solid returns over the last few months and may actually be approaching a breakup point.

Fluence and Vow ASA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fluence and Vow ASA

The main advantage of trading using opposite Fluence and Vow ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence position performs unexpectedly, Vow ASA 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 Vow ASA will offset losses from the drop in Vow ASA's long position.
The idea behind Fluence Limited and Vow ASA 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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