Correlation Between Flow Traders and Science In

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

Diversification Opportunities for Flow Traders and Science In

0.21

Correlation Coefficient

Flow Traders  Science In

Modest diversification

The 3 months correlation between Flow and Science is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders NV and Science in Sport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science in Sport 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 Science In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science in Sport has no effect on the direction of Flow Traders i.e., Flow Traders and Science In go up and down completely randomly.

Pair Corralation between Flow Traders and Science In

Assuming the 90 days trading horizon Flow Traders NV is expected to under-perform the Science In. In addition to that, Flow Traders is 7.13 times more volatile than Science in Sport. It trades about -0.03 of its total potential returns per unit of risk. Science in Sport is currently generating about 0.17 per unit of volatility. If you would invest  3,250  in Science in Sport on April 21, 2025 and sell it today you would earn a total of  100.00  from holding Science in Sport or generate 3.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	61.9%
Values	Daily Returns

Flow Traders NV  vs.  Science in Sport

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.

Science in Sport

Risk-Adjusted Performance

Good

Over the last 90 days Science in Sport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Science In is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Flow Traders and Science In

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

The idea behind Flow Traders NV and Science in Sport 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.