Correlation Between Flow Traders and Datagroup
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Datagroup 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 Datagroup 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 Datagroup SE, you can compare the effects of market volatilities on Flow Traders and Datagroup 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 Datagroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Datagroup.
Diversification Opportunities for Flow Traders and Datagroup
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Flow and Datagroup is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE 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 Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of Flow Traders i.e., Flow Traders and Datagroup go up and down completely randomly.
Pair Corralation between Flow Traders and Datagroup
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 0.93 times more return on investment than Datagroup. However, Flow Traders NV is 1.07 times less risky than Datagroup. It trades about 0.06 of its potential returns per unit of risk. Datagroup SE is currently generating about 0.0 per unit of risk. If you would invest 1,734 in Flow Traders NV on September 14, 2024 and sell it today you would earn a total of 510.00 from holding Flow Traders NV or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.91% |
| Values | Daily Returns |
Flow Traders NV vs. Datagroup SE
Performance |
| Timeline |
| Flow Traders NV |
| Datagroup SE |
Flow Traders and Datagroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Datagroup
The main advantage of trading using opposite Flow Traders and Datagroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Datagroup 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 Datagroup will offset losses from the drop in Datagroup's long position.| Flow Traders vs. Beeks Trading | Flow Traders vs. Lowland Investment Co | Flow Traders vs. Sydbank | Flow Traders vs. Take Two Interactive Software |
| Datagroup vs. Monster Beverage Corp | Datagroup vs. Allianz Technology Trust | Datagroup vs. Flow Traders NV | Datagroup vs. Albion Technology General |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |