Correlation Between Everyman Media and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Everyman Media 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 Everyman Media and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everyman Media Group and Flow Traders NV, you can compare the effects of market volatilities on Everyman Media 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 Everyman Media with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everyman Media and Flow Traders.
Diversification Opportunities for Everyman Media and Flow Traders
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Everyman and Flow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Everyman Media 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 Everyman Media 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 Everyman Media 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 Everyman Media i.e., Everyman Media and Flow Traders go up and down completely randomly.
Pair Corralation between Everyman Media and Flow Traders
Assuming the 90 days trading horizon Everyman Media Group is expected to generate 0.46 times more return on investment than Flow Traders. However, Everyman Media Group is 2.19 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 0.0 per unit of risk. If you would invest 5,300 in Everyman Media Group on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Everyman Media Group or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Everyman Media Group vs. Flow Traders NV
Performance |
| Timeline |
| Everyman Media Group |
| Flow Traders NV |
Everyman Media and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everyman Media and Flow Traders
The main advantage of trading using opposite Everyman Media and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everyman Media 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.| Everyman Media vs. Samsung Electronics Co | Everyman Media vs. Samsung Electronics Co | Everyman Media vs. Hyundai Motor | Everyman Media vs. Toyota Motor Corp |
| Flow Traders vs. Quadrise Plc | Flow Traders vs. Intuitive Investments Group | Flow Traders vs. European Metals Holdings | Flow Traders vs. Athelney Trust plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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