Correlation Between FLOW TRADERS and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and TRADEDOUBLER 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 TRADEDOUBLER 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 TRADEDOUBLER AB SK, you can compare the effects of market volatilities on FLOW TRADERS and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and TRADEDOUBLER.
Diversification Opportunities for FLOW TRADERS and TRADEDOUBLER
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FLOW and TRADEDOUBLER is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between FLOW TRADERS and TRADEDOUBLER
Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 0.32 times more return on investment than TRADEDOUBLER. However, FLOW TRADERS LTD is 3.14 times less risky than TRADEDOUBLER. It trades about -0.03 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about -0.02 per unit of risk. If you would invest 2,192 in FLOW TRADERS LTD on August 25, 2024 and sell it today you would lose (26.00) from holding FLOW TRADERS LTD or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. TRADEDOUBLER AB SK
Performance |
| Timeline |
| FLOW TRADERS LTD |
| TRADEDOUBLER AB SK |
FLOW TRADERS and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and TRADEDOUBLER
The main advantage of trading using opposite FLOW TRADERS and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| FLOW TRADERS vs. Macquarie Group Limited | FLOW TRADERS vs. MSCI Inc | FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. NMI Holdings |
| TRADEDOUBLER vs. The Interpublic Group | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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