Correlation Between Gruppo MutuiOnline and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline 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 Gruppo MutuiOnline and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo MutuiOnline SpA and Flow Traders NV, you can compare the effects of market volatilities on Gruppo MutuiOnline 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 Gruppo MutuiOnline with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Flow Traders.
Diversification Opportunities for Gruppo MutuiOnline and Flow Traders
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gruppo and Flow is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Flow Traders go up and down completely randomly.
Pair Corralation between Gruppo MutuiOnline and Flow Traders
Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to generate 18.65 times more return on investment than Flow Traders. However, Gruppo MutuiOnline is 18.65 times more volatile than Flow Traders NV. It trades about 0.14 of its potential returns per unit of risk. Flow Traders NV is currently generating about 0.05 per unit of risk. If you would invest 3,160 in Gruppo MutuiOnline SpA on September 12, 2024 and sell it today you would earn a total of 645.00 from holding Gruppo MutuiOnline SpA or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.8% |
| Values | Daily Returns |
Gruppo MutuiOnline SpA vs. Flow Traders NV
Performance |
| Timeline |
| Gruppo MutuiOnline SpA |
| Flow Traders NV |
Gruppo MutuiOnline and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo MutuiOnline and Flow Traders
The main advantage of trading using opposite Gruppo MutuiOnline and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline 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.| Gruppo MutuiOnline vs. Hong Kong Land | Gruppo MutuiOnline vs. Neometals | Gruppo MutuiOnline vs. Coor Service Management | Gruppo MutuiOnline vs. Fidelity Sustainable USD |
| Flow Traders vs. Hong Kong Land | Flow Traders vs. Neometals | Flow Traders vs. Coor Service Management | Flow Traders vs. Fidelity Sustainable USD |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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