Correlation Between Flow Traders and Greenroc Mining
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Greenroc Mining 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 Greenroc Mining 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 Greenroc Mining PLC, you can compare the effects of market volatilities on Flow Traders and Greenroc Mining 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 Greenroc Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Greenroc Mining.
Diversification Opportunities for Flow Traders and Greenroc Mining
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flow and Greenroc is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Greenroc Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenroc Mining PLC 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 Greenroc Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenroc Mining PLC has no effect on the direction of Flow Traders i.e., Flow Traders and Greenroc Mining go up and down completely randomly.
Pair Corralation between Flow Traders and Greenroc Mining
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 0.32 times more return on investment than Greenroc Mining. However, Flow Traders NV is 3.13 times less risky than Greenroc Mining. It trades about 0.06 of its potential returns per unit of risk. Greenroc Mining PLC is currently generating about -0.04 per unit of risk. If you would invest 2,131 in Flow Traders NV on August 26, 2024 and sell it today you would earn a total of 35.00 from holding Flow Traders NV or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Traders NV vs. Greenroc Mining PLC
Performance |
| Timeline |
| Flow Traders NV |
| Greenroc Mining PLC |
Flow Traders and Greenroc Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Greenroc Mining
The main advantage of trading using opposite Flow Traders and Greenroc Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Greenroc Mining 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 Greenroc Mining will offset losses from the drop in Greenroc Mining's long position.| Flow Traders vs. Beowulf Mining | Flow Traders vs. Anglesey Mining | Flow Traders vs. Endeavour Mining Corp | Flow Traders vs. McEwen Mining |
| Greenroc Mining vs. Givaudan SA | Greenroc Mining vs. Antofagasta PLC | Greenroc Mining vs. Centamin PLC | Greenroc Mining vs. Atalaya Mining |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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