Correlation Between FLOW TRADERS and 3D Systems
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and 3D Systems 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 3D Systems 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 3D Systems, you can compare the effects of market volatilities on FLOW TRADERS and 3D Systems 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 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and 3D Systems.
Diversification Opportunities for FLOW TRADERS and 3D Systems
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FLOW and SYV is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems 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 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and 3D Systems go up and down completely randomly.
Pair Corralation between FLOW TRADERS and 3D Systems
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 0.17 times more return on investment than 3D Systems. However, FLOW TRADERS LTD is 5.92 times less risky than 3D Systems. It trades about -0.01 of its potential returns per unit of risk. 3D Systems is currently generating about -0.12 per unit of risk. If you would invest 2,138 in FLOW TRADERS LTD on September 8, 2024 and sell it today you would lose (8.00) from holding FLOW TRADERS LTD or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. 3D Systems
Performance |
| Timeline |
| FLOW TRADERS LTD |
| 3D Systems |
FLOW TRADERS and 3D Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and 3D Systems
The main advantage of trading using opposite FLOW TRADERS and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.| FLOW TRADERS vs. KAUFMAN ET BROAD | FLOW TRADERS vs. BROADSTNET LEADL 00025 | FLOW TRADERS vs. Texas Roadhouse | FLOW TRADERS vs. SHIN ETSU CHEMICAL |
| 3D Systems vs. Brockhaus Capital Management | 3D Systems vs. Meli Hotels International | 3D Systems vs. Playa Hotels Resorts | 3D Systems vs. Host Hotels Resorts |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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