Correlation Between Beeks TradingLtd and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Beeks TradingLtd 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 Beeks TradingLtd and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and Flow Traders NV, you can compare the effects of market volatilities on Beeks TradingLtd 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 Beeks TradingLtd with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks TradingLtd and Flow Traders.
Diversification Opportunities for Beeks TradingLtd and Flow Traders
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beeks and Flow is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders NV and Beeks TradingLtd 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 Beeks Trading 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 NV has no effect on the direction of Beeks TradingLtd i.e., Beeks TradingLtd and Flow Traders go up and down completely randomly.
Pair Corralation between Beeks TradingLtd and Flow Traders
Assuming the 90 days trading horizon Beeks Trading is expected to under-perform the Flow Traders. In addition to that, Beeks TradingLtd is 2.07 times more volatile than Flow Traders NV. It trades about -0.04 of its total potential returns per unit of risk. Flow Traders NV is currently generating about 0.2 per unit of volatility. If you would invest 2,148 in Flow Traders NV on December 29, 2024 and sell it today you would earn a total of 598.00 from holding Flow Traders NV or generate 27.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beeks Trading vs. Flow Traders NV
Performance |
Timeline |
Beeks TradingLtd |
Flow Traders NV |
Beeks TradingLtd and Flow Traders Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beeks TradingLtd and Flow Traders
The main advantage of trading using opposite Beeks TradingLtd and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks TradingLtd 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' long position.Beeks TradingLtd vs. SupplyMe Capital PLC | Beeks TradingLtd vs. Lloyds Banking Group | Beeks TradingLtd vs. Premier African Minerals | Beeks TradingLtd vs. SANTANDER UK 8 |
Flow Traders vs. Veolia Environnement VE | Flow Traders vs. GlobalData PLC | Flow Traders vs. Fevertree Drinks Plc | Flow Traders vs. Baker Steel Resources |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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