Correlation Between Flow Capital and Azimut Holding

Can any of the company-specific risk be diversified away by investing in both Flow Capital and Azimut Holding 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 Capital and Azimut Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flow Capital Corp and Azimut Holding SpA, you can compare the effects of market volatilities on Flow Capital and Azimut Holding 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 Capital with a short position of Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Capital and Azimut Holding.

Diversification Opportunities for Flow Capital and Azimut Holding

0.0

Correlation Coefficient

Flow Capital  Azimut Holding

Pay attention - limited upside

The 3 months correlation between Flow and Azimut is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flow Capital Corp and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA and Flow Capital 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 Capital Corp are associated (or correlated) with Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Flow Capital i.e., Flow Capital and Azimut Holding go up and down completely randomly.

Pair Corralation between Flow Capital and Azimut Holding

If you would invest (100.00) in Azimut Holding SpA on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Azimut Holding SpA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Flow Capital Corp  vs.  Azimut Holding SpA

Flow Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flow Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Azimut Holding SpA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azimut Holding SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Azimut Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Flow Capital and Azimut Holding

The main advantage of trading using opposite Flow Capital and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Capital position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding's long position.

The idea behind Flow Capital Corp and Azimut Holding SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.