Correlation Between Azimut Holding and Flow Capital
Can any of the company-specific risk be diversified away by investing in both Azimut Holding and Flow Capital 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 Azimut Holding and Flow Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azimut Holding SpA and Flow Capital Corp, you can compare the effects of market volatilities on Azimut Holding and Flow Capital 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 Azimut Holding with a short position of Flow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azimut Holding and Flow Capital.
Diversification Opportunities for Azimut Holding and Flow Capital
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Azimut and Flow is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Azimut Holding SpA and Flow Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Capital Corp and Azimut Holding 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 Azimut Holding SpA are associated (or correlated) with Flow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Capital Corp has no effect on the direction of Azimut Holding i.e., Azimut Holding and Flow Capital go up and down completely randomly.
Pair Corralation between Azimut Holding and Flow Capital
Assuming the 90 days horizon Azimut Holding SpA is expected to generate 14.51 times more return on investment than Flow Capital. However, Azimut Holding is 14.51 times more volatile than Flow Capital Corp. It trades about 0.01 of its potential returns per unit of risk. Flow Capital Corp is currently generating about -0.13 per unit of risk. If you would invest 2,658 in Azimut Holding SpA on October 24, 2024 and sell it today you would lose (41.00) from holding Azimut Holding SpA or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azimut Holding SpA vs. Flow Capital Corp
Performance |
| Timeline |
| Azimut Holding SpA |
| Flow Capital Corp |
Azimut Holding and Flow Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azimut Holding and Flow Capital
The main advantage of trading using opposite Azimut Holding and Flow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azimut Holding position performs unexpectedly, Flow Capital 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 Flow Capital will offset losses from the drop in Flow Capital's long position.| Azimut Holding vs. Flow Capital Corp | Azimut Holding vs. Ameritrans Capital Corp | Azimut Holding vs. Blackhawk Growth Corp | Azimut Holding vs. Bounce Mobile Systems |
| Flow Capital vs. Guardian Capital Group | Flow Capital vs. Urbana | Flow Capital vs. Princeton Capital | Flow Capital vs. Blackhawk Growth Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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