Correlation Between Flow Traders and Bergbahnen Engelberg

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

Diversification Opportunities for Flow Traders and Bergbahnen Engelberg

0.14

Correlation Coefficient

Flow Traders  Bergbahnen Engelberg

Average diversification

The 3 months correlation between Flow and Bergbahnen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Flow Traders BV and Bergbahnen Engelberg Truebsee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergbahnen Engelberg 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 Bergbahnen Engelberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergbahnen Engelberg has no effect on the direction of Flow Traders i.e., Flow Traders and Bergbahnen Engelberg go up and down completely randomly.

Pair Corralation between Flow Traders and Bergbahnen Engelberg

Assuming the 90 days trading horizon Flow Traders BV is expected to under-perform the Bergbahnen Engelberg. In addition to that, Flow Traders is 3.73 times more volatile than Bergbahnen Engelberg Truebsee. It trades about -0.03 of its total potential returns per unit of risk. Bergbahnen Engelberg Truebsee is currently generating about 0.13 per unit of volatility. If you would invest  4,010  in Bergbahnen Engelberg Truebsee on April 23, 2025 and sell it today you would earn a total of  290.00  from holding Bergbahnen Engelberg Truebsee or generate 7.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Flow Traders BV  vs.  Bergbahnen Engelberg Truebsee

Flow Traders BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flow Traders BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bergbahnen Engelberg

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bergbahnen Engelberg Truebsee are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Bergbahnen Engelberg may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Flow Traders and Bergbahnen Engelberg

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

The idea behind Flow Traders BV and Bergbahnen Engelberg Truebsee 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.