Correlation Between BenevolentAI and Flow Traders
Can any of the company-specific risk be diversified away by investing in both BenevolentAI and Flow Traders 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 BenevolentAI and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenevolentAI SA and Flow Traders BV, you can compare the effects of market volatilities on BenevolentAI and Flow Traders 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 BenevolentAI with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenevolentAI and Flow Traders.
Diversification Opportunities for BenevolentAI and Flow Traders
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BenevolentAI and Flow is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BenevolentAI SA and Flow Traders BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders BV and BenevolentAI 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 BenevolentAI SA are associated (or correlated) with Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders BV has no effect on the direction of BenevolentAI i.e., BenevolentAI and Flow Traders go up and down completely randomly.
Pair Corralation between BenevolentAI and Flow Traders
Assuming the 90 days trading horizon BenevolentAI SA is expected to generate 2.75 times more return on investment than Flow Traders. However, BenevolentAI is 2.75 times more volatile than Flow Traders BV. It trades about 0.05 of its potential returns per unit of risk. Flow Traders BV is currently generating about 0.03 per unit of risk. If you would invest 59.00 in BenevolentAI SA on September 3, 2024 and sell it today you would earn a total of 15.00 from holding BenevolentAI SA or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenevolentAI SA vs. Flow Traders BV
Performance |
| Timeline |
| BenevolentAI SA |
| Flow Traders BV |
BenevolentAI and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenevolentAI and Flow Traders
The main advantage of trading using opposite BenevolentAI and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenevolentAI position performs unexpectedly, Flow Traders 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 Traders will offset losses from the drop in Flow Traders' long position.| BenevolentAI vs. Vastned Retail NV | BenevolentAI vs. AMG Advanced Metallurgical | BenevolentAI vs. Flow Traders BV | BenevolentAI vs. Reinet Investments SCA |
| Flow Traders vs. NN Group NV | Flow Traders vs. BE Semiconductor Industries | Flow Traders vs. Koninklijke Ahold Delhaize | Flow Traders vs. ASR Nederland NV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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