Correlation Between Flow Traders and Invesco Physical
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Invesco Physical 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 Invesco Physical 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 Invesco Physical Silver, you can compare the effects of market volatilities on Flow Traders and Invesco Physical 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 Invesco Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Invesco Physical.
Diversification Opportunities for Flow Traders and Invesco Physical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flow and Invesco is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Invesco Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Physical Silver 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 Invesco Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Physical Silver has no effect on the direction of Flow Traders i.e., Flow Traders and Invesco Physical go up and down completely randomly.
Pair Corralation between Flow Traders and Invesco Physical
Assuming the 90 days trading horizon Flow Traders NV is expected to generate 0.88 times more return on investment than Invesco Physical. However, Flow Traders NV is 1.13 times less risky than Invesco Physical. It trades about 0.1 of its potential returns per unit of risk. Invesco Physical Silver is currently generating about -0.23 per unit of risk. If you would invest 2,103 in Flow Traders NV on August 27, 2024 and sell it today you would earn a total of 63.00 from holding Flow Traders NV or generate 3.0% 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. Invesco Physical Silver
Performance |
| Timeline |
| Flow Traders NV |
| Invesco Physical Silver |
Flow Traders and Invesco Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Invesco Physical
The main advantage of trading using opposite Flow Traders and Invesco Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Invesco Physical 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 Invesco Physical will offset losses from the drop in Invesco Physical's long position.| Flow Traders vs. Edita Food Industries | Flow Traders vs. Skandinaviska Enskilda Banken | Flow Traders vs. Prudential Financial | Flow Traders vs. Erste Group Bank |
| Invesco Physical vs. Playtech Plc | Invesco Physical vs. Microchip Technology | Invesco Physical vs. Made Tech Group | Invesco Physical 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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