Correlation Between Interlink Electronics and Flex

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

Diversification Opportunities for Interlink Electronics and Flex

-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between Interlink and Flex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex and Interlink Electronics 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 Interlink Electronics are associated (or correlated) with Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Interlink Electronics i.e., Interlink Electronics and Flex go up and down completely randomly.

Pair Corralation between Interlink Electronics and Flex

Given the investment horizon of 90 days Interlink Electronics is expected to under-perform the Flex. In addition to that, Interlink Electronics is 2.15 times more volatile than Flex. It trades about -0.12 of its total potential returns per unit of risk. Flex is currently generating about 0.04 per unit of volatility. If you would invest  5,883  in Flex on October 12, 2025 and sell it today you would earn a total of  267.00  from holding Flex or generate 4.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Interlink Electronics  vs.  Flex

 Performance 
       Timeline  
Interlink Electronics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Interlink Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Flex 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Flex are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Flex may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Interlink Electronics and Flex Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Interlink Electronics and Flex

The main advantage of trading using opposite Interlink Electronics and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlink Electronics position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.
The idea behind Interlink Electronics and Flex 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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