Correlation Between Flow Traders and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Hilton Food 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 Hilton Food 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 Hilton Food Group, you can compare the effects of market volatilities on Flow Traders and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Hilton Food.
Diversification Opportunities for Flow Traders and Hilton Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flow and Hilton is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Flow Traders i.e., Flow Traders and Hilton Food go up and down completely randomly.
Pair Corralation between Flow Traders and Hilton Food
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 1.05 times more return on investment than Hilton Food. However, Flow Traders is 1.05 times more volatile than Hilton Food Group. It trades about 0.18 of its potential returns per unit of risk. Hilton Food Group is currently generating about 0.07 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Traders NV vs. Hilton Food Group
Performance |
| Timeline |
| Flow Traders NV |
| Hilton Food Group |
Flow Traders and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Hilton Food
The main advantage of trading using opposite Flow Traders and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Flow Traders vs. Coeur Mining | Flow Traders vs. Anglesey Mining | Flow Traders vs. National Beverage Corp | Flow Traders vs. Beowulf Mining |
| Hilton Food vs. MTI Wireless Edge | Hilton Food vs. AcadeMedia AB | Hilton Food vs. Fonix Mobile plc | Hilton Food vs. mobilezone holding AG |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |