Correlation Between FLOW TRADERS and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and Amcor Plc 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 Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and Amcor plc, you can compare the effects of market volatilities on FLOW TRADERS and Amcor Plc 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 Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Amcor Plc.
Diversification Opportunities for FLOW TRADERS and Amcor Plc
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FLOW and Amcor is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc 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 LTD are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and Amcor Plc go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Amcor Plc
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 1.68 times more return on investment than Amcor Plc. However, FLOW TRADERS is 1.68 times more volatile than Amcor plc. It trades about 0.22 of its potential returns per unit of risk. Amcor plc is currently generating about 0.17 per unit of risk. If you would invest 2,152 in FLOW TRADERS LTD on November 3, 2024 and sell it today you would earn a total of 232.00 from holding FLOW TRADERS LTD or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Amcor plc
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Amcor plc |
FLOW TRADERS and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Amcor Plc
The main advantage of trading using opposite FLOW TRADERS and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| FLOW TRADERS vs. Tencent Music Entertainment | FLOW TRADERS vs. LPKF Laser Electronics | FLOW TRADERS vs. Nanjing Panda Electronics | FLOW TRADERS vs. UMC Electronics Co |
| Amcor Plc vs. ZhongAn Online P | Amcor Plc vs. Comba Telecom Systems | Amcor Plc vs. GungHo Online Entertainment | Amcor Plc vs. Iridium Communications |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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