Correlation Between Cboe UK and Flow Traders
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By analyzing existing cross correlation between Cboe UK Consumer and Flow Traders NV, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Flow Traders.
Diversification Opportunities for Cboe UK and Flow Traders
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Flow is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders NV and Cboe UK 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 Cboe UK Consumer 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 NV has no effect on the direction of Cboe UK i.e., Cboe UK and Flow Traders go up and down completely randomly.
Pair Corralation between Cboe UK and Flow Traders
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.52 times more return on investment than Flow Traders. However, Cboe UK Consumer is 1.94 times less risky than Flow Traders. It trades about 0.07 of its potential returns per unit of risk. Flow Traders NV is currently generating about 0.01 per unit of risk. If you would invest 2,559,267 in Cboe UK Consumer on August 31, 2024 and sell it today you would earn a total of 701,035 from holding Cboe UK Consumer or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.95% |
| Values | Daily Returns |
Cboe UK Consumer vs. Flow Traders NV
Performance |
| Timeline |
Cboe UK and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Flow Traders NV
Pair trading matchups for Flow Traders
Pair Trading with Cboe UK and Flow Traders
The main advantage of trading using opposite Cboe UK and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Lendinvest PLC | Cboe UK vs. Monster Beverage Corp | Cboe UK vs. Cembra Money Bank | Cboe UK vs. UNIQA Insurance Group |
| Flow Traders vs. Central Asia Metals | Flow Traders vs. Taiwan Semiconductor Manufacturing | Flow Traders vs. Sovereign Metals | Flow Traders vs. Jacquet Metal Service |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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