Correlation Between Flow Traders and Phoenix Group

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

By analyzing existing cross correlation between Flow Traders NV and Phoenix Group Holdings, you can compare the effects of market volatilities on Flow Traders and Phoenix Group 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 Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Traders and Phoenix Group.

Diversification Opportunities for Flow Traders and Phoenix Group

0.0

Correlation Coefficient

Flow Traders  Phoenix Group

Pay attention - limited upside

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

Pair Corralation between Flow Traders and Phoenix Group

If you would invest  0.00  in Phoenix Group Holdings on April 19, 2025 and sell it today you would earn a total of  0.00  from holding Phoenix Group Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Flow Traders NV  vs.  Phoenix Group Holdings

Flow Traders NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flow Traders NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Flow Traders is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Phoenix Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phoenix Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Phoenix Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Flow Traders and Phoenix Group

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

The idea behind Flow Traders NV and Phoenix Group Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.