Correlation Between Flow Traders and U Blox
Can any of the company-specific risk be diversified away by investing in both Flow Traders and U Blox 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 U Blox 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 U Blox Holding, you can compare the effects of market volatilities on Flow Traders and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and U Blox.
Diversification Opportunities for Flow Traders and U Blox
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flow and UBXN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders BV and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Flow Traders i.e., Flow Traders and U Blox go up and down completely randomly.
Pair Corralation between Flow Traders and U Blox
Assuming the 90 days trading horizon Flow Traders BV is expected to generate 0.77 times more return on investment than U Blox. However, Flow Traders BV is 1.3 times less risky than U Blox. It trades about 0.01 of its potential returns per unit of risk. U Blox Holding is currently generating about -0.03 per unit of risk. If you would invest 2,091 in Flow Traders BV on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Flow Traders BV or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
Flow Traders BV vs. U Blox Holding
Performance |
| Timeline |
| Flow Traders BV |
| U Blox Holding |
Flow Traders and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Traders and U Blox
The main advantage of trading using opposite Flow Traders and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Traders position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox'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 |
| U Blox vs. Jungfraubahn Holding AG | U Blox vs. Amsterdam Commodities NV | U Blox vs. Flow Traders BV | U Blox 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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