Correlation Between SIEM OFFSHORE and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and FLOW TRADERS 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 SIEM OFFSHORE and FLOW TRADERS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and FLOW TRADERS LTD, you can compare the effects of market volatilities on SIEM OFFSHORE and FLOW TRADERS 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 SIEM OFFSHORE with a short position of FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and FLOW TRADERS.
Diversification Opportunities for SIEM OFFSHORE and FLOW TRADERS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIEM and FLOW is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and FLOW TRADERS go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and FLOW TRADERS
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to generate 2.34 times more return on investment than FLOW TRADERS. However, SIEM OFFSHORE is 2.34 times more volatile than FLOW TRADERS LTD. It trades about 0.18 of its potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.13 per unit of risk. If you would invest 221.00 in SIEM OFFSHORE NEW on September 3, 2024 and sell it today you would earn a total of 24.00 from holding SIEM OFFSHORE NEW or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. FLOW TRADERS LTD
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| FLOW TRADERS LTD |
SIEM OFFSHORE and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and FLOW TRADERS
The main advantage of trading using opposite SIEM OFFSHORE and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS's long position.| SIEM OFFSHORE vs. Corsair Gaming | SIEM OFFSHORE vs. Air New Zealand | SIEM OFFSHORE vs. SYSTEMAIR AB | SIEM OFFSHORE vs. ALTAIR RES INC |
| FLOW TRADERS vs. Morgan Stanley | FLOW TRADERS vs. The Goldman Sachs | FLOW TRADERS vs. The Goldman Sachs | FLOW TRADERS vs. Superior Plus Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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