Correlation Between FLOW TRADERS and Nano Dimension

Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS and Nano Dimension 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 Nano Dimension 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 Nano Dimension, you can compare the effects of market volatilities on FLOW TRADERS and Nano Dimension 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 Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Nano Dimension.

Diversification Opportunities for FLOW TRADERS and Nano Dimension

0.33

Correlation Coefficient

FLOW TRADERS  Nano Dimension

Weak diversification

The 3 months correlation between FLOW and Nano is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension 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 Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and Nano Dimension go up and down completely randomly.

Pair Corralation between FLOW TRADERS and Nano Dimension

Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 0.41 times more return on investment than Nano Dimension. However, FLOW TRADERS LTD is 2.44 times less risky than Nano Dimension. It trades about 0.12 of its potential returns per unit of risk. Nano Dimension is currently generating about 0.03 per unit of risk. If you would invest  2,124  in FLOW TRADERS LTD on October 25, 2024 and sell it today you would earn a total of  232.00  from holding FLOW TRADERS LTD or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

FLOW TRADERS LTD  vs.  Nano Dimension

FLOW TRADERS LTD

Risk-Adjusted Performance

9 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FLOW TRADERS LTD are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FLOW TRADERS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Nano Dimension

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nano Dimension are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Nano Dimension may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FLOW TRADERS and Nano Dimension

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

The idea behind FLOW TRADERS LTD and Nano Dimension 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..