Correlation Between Batm Advanced and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Batm Advanced 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 Batm Advanced and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and Flow Traders NV, you can compare the effects of market volatilities on Batm Advanced 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 Batm Advanced with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Flow Traders.
Diversification Opportunities for Batm Advanced and Flow Traders
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Batm and Flow is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications 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 Batm Advanced 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 Batm Advanced Communications 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 Batm Advanced i.e., Batm Advanced and Flow Traders go up and down completely randomly.
Pair Corralation between Batm Advanced and Flow Traders
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Flow Traders. In addition to that, Batm Advanced is 1.09 times more volatile than Flow Traders NV. It trades about -0.12 of its total potential returns per unit of risk. Flow Traders NV is currently generating about 0.27 per unit of volatility. If you would invest 2,110 in Flow Traders NV on October 11, 2024 and sell it today you would earn a total of 203.00 from holding Flow Traders NV or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Flow Traders NV
Performance |
| Timeline |
| Batm Advanced Commun |
| Flow Traders NV |
Batm Advanced and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Flow Traders
The main advantage of trading using opposite Batm Advanced and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced 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.| Batm Advanced vs. Axfood AB | Batm Advanced vs. Odfjell Drilling | Batm Advanced vs. Dairy Farm International | Batm Advanced vs. Premier Foods PLC |
| Flow Traders vs. UNIQA Insurance Group | Flow Traders vs. Ecclesiastical Insurance Office | Flow Traders vs. Centaur Media | Flow Traders vs. Vienna Insurance Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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