Correlation Between EVS Broadcast and Flow Traders
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast 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 EVS Broadcast and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Flow Traders NV, you can compare the effects of market volatilities on EVS Broadcast 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 EVS Broadcast with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Flow Traders.
Diversification Opportunities for EVS Broadcast and Flow Traders
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVS and Flow is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment 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 EVS Broadcast 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 EVS Broadcast Equipment 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 EVS Broadcast i.e., EVS Broadcast and Flow Traders go up and down completely randomly.
Pair Corralation between EVS Broadcast and Flow Traders
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.18 times more return on investment than Flow Traders. However, EVS Broadcast is 1.18 times more volatile than Flow Traders NV. It trades about 0.05 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 2,893 in EVS Broadcast Equipment on August 28, 2024 and sell it today you would earn a total of 47.00 from holding EVS Broadcast Equipment 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 |
EVS Broadcast Equipment vs. Flow Traders NV
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Flow Traders NV |
EVS Broadcast and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Flow Traders
The main advantage of trading using opposite EVS Broadcast and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast 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.| EVS Broadcast vs. Samsung Electronics Co | EVS Broadcast vs. Samsung Electronics Co | EVS Broadcast vs. Hyundai Motor | EVS Broadcast 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |