Correlation Between Creo Medical and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Creo Medical 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 Creo Medical and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creo Medical Group and Flow Traders NV, you can compare the effects of market volatilities on Creo Medical 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 Creo Medical with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Flow Traders.
Diversification Opportunities for Creo Medical and Flow Traders
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Creo and Flow is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group 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 Creo Medical 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 Creo Medical Group 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 Creo Medical i.e., Creo Medical and Flow Traders go up and down completely randomly.
Pair Corralation between Creo Medical and Flow Traders
Assuming the 90 days trading horizon Creo Medical Group is expected to under-perform the Flow Traders. In addition to that, Creo Medical is 2.55 times more volatile than Flow Traders NV. It trades about -0.3 of its total potential returns per unit of risk. Flow Traders NV is currently generating about 0.18 per unit of volatility. If you would invest 1,812 in Flow Traders NV on September 12, 2024 and sell it today you would earn a total of 296.00 from holding Flow Traders NV or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creo Medical Group vs. Flow Traders NV
Performance |
| Timeline |
| Creo Medical Group |
| Flow Traders NV |
Creo Medical and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Flow Traders
The main advantage of trading using opposite Creo Medical and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical 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.| Creo Medical vs. Blackrock World Mining | Creo Medical vs. GreenX Metals | Creo Medical vs. Southwest Airlines Co | Creo Medical vs. Central Asia Metals |
| Flow Traders vs. Coeur Mining | Flow Traders vs. Anglesey Mining | Flow Traders vs. National Beverage Corp | Flow Traders vs. Beowulf Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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