Correlation Between FLOW TRADERS and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on FLOW TRADERS and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and SIEM OFFSHORE.
Diversification Opportunities for FLOW TRADERS and SIEM OFFSHORE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FLOW and SIEM is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between FLOW TRADERS and SIEM OFFSHORE
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 0.67 times more return on investment than SIEM OFFSHORE. However, FLOW TRADERS LTD is 1.49 times less risky than SIEM OFFSHORE. It trades about 0.03 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about -0.03 per unit of risk. If you would invest 1,996 in FLOW TRADERS LTD on September 3, 2024 and sell it today you would earn a total of 116.00 from holding FLOW TRADERS LTD or generate 5.81% 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. SIEM OFFSHORE NEW
Performance |
| Timeline |
| FLOW TRADERS LTD |
| SIEM OFFSHORE NEW |
FLOW TRADERS and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and SIEM OFFSHORE
The main advantage of trading using opposite FLOW TRADERS and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| FLOW TRADERS vs. Morgan Stanley | FLOW TRADERS vs. The Goldman Sachs | FLOW TRADERS vs. The Goldman Sachs | FLOW TRADERS vs. Superior Plus Corp |
| SIEM OFFSHORE vs. Corsair Gaming | SIEM OFFSHORE vs. Air New Zealand | SIEM OFFSHORE vs. SYSTEMAIR AB | SIEM OFFSHORE vs. ALTAIR RES INC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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