Correlation Between Flow Traders and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Creo Medical 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 Creo Medical 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 Creo Medical Group, you can compare the effects of market volatilities on Flow Traders and Creo Medical 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 Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Creo Medical.
Diversification Opportunities for Flow Traders and Creo Medical
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flow and Creo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group 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 Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Flow Traders i.e., Flow Traders and Creo Medical go up and down completely randomly.
Pair Corralation between Flow Traders and Creo Medical
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 0.39 times more return on investment than Creo Medical. However, Flow Traders NV is 2.55 times less risky than Creo Medical. It trades about 0.18 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.3 per unit of risk. If you would invest 1,812 in Flow Traders NV on September 12, 2024 and sell it today you would earn a total of 296.00 from holding Flow Traders NV or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Traders NV vs. Creo Medical Group
Performance |
| Timeline |
| Flow Traders NV |
| Creo Medical Group |
Flow Traders and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Creo Medical
The main advantage of trading using opposite Flow Traders and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Flow Traders vs. Coeur Mining | Flow Traders vs. Anglesey Mining | Flow Traders vs. National Beverage Corp | Flow Traders vs. Beowulf Mining |
| Creo Medical vs. Blackrock World Mining | Creo Medical vs. GreenX Metals | Creo Medical vs. Southwest Airlines Co | Creo Medical vs. Central Asia Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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