Correlation Between Atresmedia and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Atresmedia and Flow Traders 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 Atresmedia and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Flow Traders NV, you can compare the effects of market volatilities on Atresmedia and Flow Traders 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 Atresmedia with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Flow Traders.
Diversification Opportunities for Atresmedia and Flow Traders
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atresmedia and Flow is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders NV and Atresmedia 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 Atresmedia are associated (or correlated) with Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders NV has no effect on the direction of Atresmedia i.e., Atresmedia and Flow Traders go up and down completely randomly.
Pair Corralation between Atresmedia and Flow Traders
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.75 times more return on investment than Flow Traders. However, Atresmedia is 1.34 times less risky than Flow Traders. It trades about 0.09 of its potential returns per unit of risk. Flow Traders NV is currently generating about 0.06 per unit of risk. If you would invest 446.00 in Atresmedia on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Atresmedia or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. Flow Traders NV
Performance |
| Timeline |
| Atresmedia |
| Flow Traders NV |
Atresmedia and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Flow Traders
The main advantage of trading using opposite Atresmedia and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia position performs unexpectedly, Flow Traders 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 Flow Traders will offset losses from the drop in Flow Traders' long position.| Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Samsung Electronics Co | Atresmedia vs. Hyundai Motor | Atresmedia vs. Toyota Motor Corp |
| Flow Traders vs. Edita Food Industries | Flow Traders vs. Skandinaviska Enskilda Banken | Flow Traders vs. Prudential Financial | Flow Traders vs. Erste Group Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |