Correlation Between FLOW TRADERS and Sixt SE
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By analyzing existing cross correlation between FLOW TRADERS LTD and Sixt SE, you can compare the effects of market volatilities on FLOW TRADERS and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Sixt SE.
Diversification Opportunities for FLOW TRADERS and Sixt SE
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FLOW and Sixt is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and Sixt SE go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Sixt SE
Assuming the 90 days horizon FLOW TRADERS is expected to generate 1.36 times less return on investment than Sixt SE. In addition to that, FLOW TRADERS is 1.1 times more volatile than Sixt SE. It trades about 0.01 of its total potential returns per unit of risk. Sixt SE is currently generating about 0.02 per unit of volatility. If you would invest 4,919 in Sixt SE on September 3, 2024 and sell it today you would earn a total of 451.00 from holding Sixt SE or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Sixt SE
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Sixt SE |
FLOW TRADERS and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Sixt SE
The main advantage of trading using opposite FLOW TRADERS and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE'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 |
| Sixt SE vs. The Trade Desk | Sixt SE vs. FLOW TRADERS LTD | Sixt SE vs. Hyatt Hotels | Sixt SE vs. SALESFORCE INC CDR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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