Correlation Between Flow Traders and Azerion Group

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

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

Diversification Opportunities for Flow Traders and Azerion Group

0.09

Correlation Coefficient

Flow Traders  Azerion Group

Significant diversification

The 3 months correlation between Flow and Azerion is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders BV and Azerion Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azerion Group NV 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 BV are associated (or correlated) with Azerion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azerion Group NV has no effect on the direction of Flow Traders i.e., Flow Traders and Azerion Group go up and down completely randomly.

Pair Corralation between Flow Traders and Azerion Group

Assuming the 90 days trading horizon Flow Traders BV is expected to generate 1.0 times more return on investment than Azerion Group. However, Flow Traders is 1.0 times more volatile than Azerion Group NV. It trades about 0.09 of its potential returns per unit of risk. Azerion Group NV is currently generating about -0.14 per unit of risk. If you would invest  2,430  in Flow Traders BV on April 25, 2025 and sell it today you would earn a total of  250.00  from holding Flow Traders BV or generate 10.29% return on investment over 90 days.

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

Flow Traders BV  vs.  Azerion Group NV

Flow Traders BV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flow Traders BV are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flow Traders may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Azerion Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azerion Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Flow Traders and Azerion Group

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

The idea behind Flow Traders BV and Azerion Group NV 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.