Correlation Between Flow Traders and Bever Holding
Can any of the company-specific risk be diversified away by investing in both Flow Traders and Bever Holding 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 Bever Holding 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 Bever Holding NV, you can compare the effects of market volatilities on Flow Traders and Bever Holding 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 Bever Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Bever Holding.
Diversification Opportunities for Flow Traders and Bever Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flow and Bever is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders BV and Bever Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bever Holding NV 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 Bever Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bever Holding NV has no effect on the direction of Flow Traders i.e., Flow Traders and Bever Holding go up and down completely randomly.
Pair Corralation between Flow Traders and Bever Holding
If you would invest 2,360 in Flow Traders BV on November 28, 2024 and sell it today you would earn a total of 204.00 from holding Flow Traders BV or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Traders BV vs. Bever Holding NV
Performance |
| Timeline |
| Flow Traders BV |
| Bever Holding NV |
Flow Traders and Bever Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and Bever Holding
The main advantage of trading using opposite Flow Traders and Bever Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, Bever Holding 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 Bever Holding will offset losses from the drop in Bever Holding'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 |
| Bever Holding vs. NEPI Rockcastle PLC | Bever Holding vs. Amsterdam Commodities NV | Bever Holding vs. AMG Advanced Metallurgical | Bever Holding vs. ForFarmers NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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