Correlation Between SPEAR Investments and Flow Traders

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

By analyzing existing cross correlation between SPEAR Investments I and Flow Traders BV, you can compare the effects of market volatilities on SPEAR Investments and Flow Traders 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 SPEAR Investments with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPEAR Investments and Flow Traders.

Diversification Opportunities for SPEAR Investments and Flow Traders

0.26

Correlation Coefficient

SPEAR Investments  Flow Traders

Modest diversification

The 3 months correlation between SPEAR and Flow is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SPEAR Investments I and Flow Traders BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders BV and SPEAR Investments 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 SPEAR Investments I are associated (or correlated) with Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders BV has no effect on the direction of SPEAR Investments i.e., SPEAR Investments and Flow Traders go up and down completely randomly.

Pair Corralation between SPEAR Investments and Flow Traders

If you would invest  690.00  in SPEAR Investments I on April 13, 2025 and sell it today you would earn a total of  0.00  from holding SPEAR Investments I or generate 0.0% return on investment over 90 days.

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

SPEAR Investments I  vs.  Flow Traders BV

SPEAR Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPEAR Investments I 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.

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.

Pair Trading with SPEAR Investments and Flow Traders

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

The idea behind SPEAR Investments I and Flow Traders BV 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 Anywhere module to track or share privately all of your investments from the convenience of any device.