Correlation Between FLOW TRADERS and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on FLOW TRADERS and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and KENEDIX OFFICE.
Diversification Opportunities for FLOW TRADERS and KENEDIX OFFICE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FLOW and KENEDIX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between FLOW TRADERS and KENEDIX OFFICE
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 1.04 times more return on investment than KENEDIX OFFICE. However, FLOW TRADERS is 1.04 times more volatile than KENEDIX OFFICE INV. It trades about 0.12 of its potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about 0.01 per unit of risk. If you would invest 2,128 in FLOW TRADERS LTD on October 19, 2024 and sell it today you would earn a total of 156.00 from holding FLOW TRADERS LTD or generate 7.33% 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. KENEDIX OFFICE INV
Performance |
| Timeline |
| FLOW TRADERS LTD |
| KENEDIX OFFICE INV |
FLOW TRADERS and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and KENEDIX OFFICE
The main advantage of trading using opposite FLOW TRADERS and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| FLOW TRADERS vs. EEDUCATION ALBERT AB | FLOW TRADERS vs. Air Lease | FLOW TRADERS vs. CanSino Biologics | FLOW TRADERS vs. GEAR4MUSIC LS 10 |
| KENEDIX OFFICE vs. Waste Management | KENEDIX OFFICE vs. FLOW TRADERS LTD | KENEDIX OFFICE vs. Coor Service Management | KENEDIX OFFICE vs. CarsalesCom |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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