Correlation Between Newtek Business and Flag Ship
Can any of the company-specific risk be diversified away by investing in both Newtek Business and Flag Ship 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 Newtek Business and Flag Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newtek Business Services and Flag Ship Acquisition, you can compare the effects of market volatilities on Newtek Business and Flag Ship 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 Newtek Business with a short position of Flag Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newtek Business and Flag Ship.
Diversification Opportunities for Newtek Business and Flag Ship
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newtek and Flag is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Newtek Business Services and Flag Ship Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flag Ship Acquisition and Newtek Business 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 Newtek Business Services are associated (or correlated) with Flag Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flag Ship Acquisition has no effect on the direction of Newtek Business i.e., Newtek Business and Flag Ship go up and down completely randomly.
Pair Corralation between Newtek Business and Flag Ship
Given the investment horizon of 90 days Newtek Business Services is expected to under-perform the Flag Ship. In addition to that, Newtek Business is 5.09 times more volatile than Flag Ship Acquisition. It trades about -0.14 of its total potential returns per unit of risk. Flag Ship Acquisition is currently generating about 0.07 per unit of volatility. If you would invest 1,050 in Flag Ship Acquisition on August 24, 2025 and sell it today you would earn a total of 17.00 from holding Flag Ship Acquisition or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newtek Business Services vs. Flag Ship Acquisition
Performance |
| Timeline |
| Newtek Business Services |
| Flag Ship Acquisition |
Newtek Business and Flag Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newtek Business and Flag Ship
The main advantage of trading using opposite Newtek Business and Flag Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newtek Business position performs unexpectedly, Flag Ship 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 Flag Ship will offset losses from the drop in Flag Ship's long position.| Newtek Business vs. NewtekOne, Depositary Shares, | Newtek Business vs. SuRo Capital Corp | Newtek Business vs. Waton Financial Limited | Newtek Business vs. TONX |
| Flag Ship vs. Horizon Space Acquisition | Flag Ship vs. Spark I Acquisition | Flag Ship vs. Lakeshore Acquisition III | Flag Ship vs. Bynordic Acquisition Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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