Correlation Between Flow Traders and Uranium Energy
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Uranium Energy 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 Uranium Energy 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 Uranium Energy Corp, you can compare the effects of market volatilities on Flow Traders and Uranium Energy 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 Uranium Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Uranium Energy.
Diversification Opportunities for Flow Traders and Uranium Energy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flow and Uranium is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Uranium Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uranium Energy Corp 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 Uranium Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uranium Energy Corp has no effect on the direction of Flow Traders i.e., Flow Traders and Uranium Energy go up and down completely randomly.
Pair Corralation between Flow Traders and Uranium Energy
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 0.46 times more return on investment than Uranium Energy. However, Flow Traders NV is 2.17 times less risky than Uranium Energy. It trades about 0.39 of its potential returns per unit of risk. Uranium Energy Corp is currently generating about 0.01 per unit of risk. If you would invest 2,154 in Flow Traders NV on October 23, 2024 and sell it today you would earn a total of 229.00 from holding Flow Traders NV or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Flow Traders NV vs. Uranium Energy Corp
Performance |
| Timeline |
| Flow Traders NV |
| Uranium Energy Corp |
Flow Traders and Uranium Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Uranium Energy
The main advantage of trading using opposite Flow Traders and Uranium Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Uranium Energy 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 Uranium Energy will offset losses from the drop in Uranium Energy's long position.| Flow Traders vs. Automatic Data Processing | Flow Traders vs. Charter Communications Cl | Flow Traders vs. Datalogic | Flow Traders vs. Clean Power Hydrogen |
| Uranium Energy vs. Fevertree Drinks Plc | Uranium Energy vs. Flow Traders NV | Uranium Energy vs. PPHE Hotel Group | Uranium Energy vs. National Beverage 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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