Correlation Between Flow Traders and Alpine Select
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Alpine Select 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 Flow Traders and Alpine Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Traders BV and Alpine Select AG, you can compare the effects of market volatilities on Flow Traders and Alpine Select 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 Flow Traders with a short position of Alpine Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Alpine Select.
Diversification Opportunities for Flow Traders and Alpine Select
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flow and Alpine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders BV and Alpine Select AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Select AG and Flow Traders 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 Flow Traders BV are associated (or correlated) with Alpine Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Select AG has no effect on the direction of Flow Traders i.e., Flow Traders and Alpine Select go up and down completely randomly.
Pair Corralation between Flow Traders and Alpine Select
If you would invest 1,870 in Flow Traders BV on September 3, 2024 and sell it today you would earn a total of 240.00 from holding Flow Traders BV or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Flow Traders BV vs. Alpine Select AG
Performance |
| Timeline |
| Flow Traders BV |
| Alpine Select AG |
Flow Traders and Alpine Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Alpine Select
The main advantage of trading using opposite Flow Traders and Alpine Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Alpine Select 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 Alpine Select will offset losses from the drop in Alpine Select's long position.| Flow Traders vs. NN Group NV | Flow Traders vs. BE Semiconductor Industries | Flow Traders vs. Koninklijke Ahold Delhaize | Flow Traders vs. ASR Nederland NV |
| Alpine Select vs. Carlo Gavazzi Holding | Alpine Select vs. Bellevue Group AG | Alpine Select vs. Ascom Holding AG |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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