Correlation Between FLOW TRADERS and Apple

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

Diversification Opportunities for FLOW TRADERS and Apple

-0.46

Correlation Coefficient

FLOW TRADERS  Apple

Very good diversification

The 3 months correlation between FLOW and Apple is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of FLOW TRADERS i.e., FLOW TRADERS and Apple go up and down completely randomly.

Pair Corralation between FLOW TRADERS and Apple

Assuming the 90 days horizon FLOW TRADERS LTD is expected to generate 1.21 times more return on investment than Apple. However, FLOW TRADERS is 1.21 times more volatile than Apple Inc. It trades about 0.1 of its potential returns per unit of risk. Apple Inc is currently generating about 0.01 per unit of risk. If you would invest  2,392  in FLOW TRADERS LTD on April 25, 2025 and sell it today you would earn a total of  282.00  from holding FLOW TRADERS LTD or generate 11.79% return on investment over 90 days.

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

FLOW TRADERS LTD  vs.  Apple Inc

FLOW TRADERS LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FLOW TRADERS LTD are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, FLOW TRADERS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Apple is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with FLOW TRADERS and Apple

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

The idea behind FLOW TRADERS LTD and Apple Inc 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.