Correlation Between Flow Traders and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Jacquet Metal 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 Flow Traders and Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Traders NV and Jacquet Metal Service, you can compare the effects of market volatilities on Flow Traders and Jacquet Metal 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 Flow Traders with a short position of Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Jacquet Metal.
Diversification Opportunities for Flow Traders and Jacquet Metal
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flow and Jacquet is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service and Flow Traders 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 Flow Traders NV are associated (or correlated) with Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Flow Traders i.e., Flow Traders and Jacquet Metal go up and down completely randomly.
Pair Corralation between Flow Traders and Jacquet Metal
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 1.16 times more return on investment than Jacquet Metal. However, Flow Traders is 1.16 times more volatile than Jacquet Metal Service. It trades about 0.04 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.02 per unit of risk. If you would invest 1,938 in Flow Traders NV on October 19, 2024 and sell it today you would earn a total of 435.00 from holding Flow Traders NV or generate 22.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Traders NV vs. Jacquet Metal Service
Performance |
| Timeline |
| Flow Traders NV |
| Jacquet Metal Service |
Flow Traders and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Jacquet Metal
The main advantage of trading using opposite Flow Traders and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Flow Traders vs. Walmart | Flow Traders vs. BYD Co | Flow Traders vs. Volkswagen AG | Flow Traders vs. Volkswagen AG Non Vtg |
| Jacquet Metal vs. Canadian General Investments | Jacquet Metal vs. EJF Investments | Jacquet Metal vs. Flow Traders NV | Jacquet Metal vs. Qurate Retail Series |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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