Correlation Between Avantium Holding and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Avantium Holding 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 Avantium Holding and Flow Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avantium Holding BV and Flow Traders BV, you can compare the effects of market volatilities on Avantium Holding 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 Avantium Holding with a short position of Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avantium Holding and Flow Traders.
Diversification Opportunities for Avantium Holding and Flow Traders
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avantium and Flow is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Avantium Holding BV 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 Avantium Holding 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 Avantium Holding BV 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 Avantium Holding i.e., Avantium Holding and Flow Traders go up and down completely randomly.
Pair Corralation between Avantium Holding and Flow Traders
Assuming the 90 days trading horizon Avantium Holding BV is expected to generate 3.43 times more return on investment than Flow Traders. However, Avantium Holding is 3.43 times more volatile than Flow Traders BV. It trades about 0.22 of its potential returns per unit of risk. Flow Traders BV is currently generating about -0.01 per unit of risk. If you would invest 605.00 in Avantium Holding BV on September 3, 2025 and sell it today you would earn a total of 97.00 from holding Avantium Holding BV or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avantium Holding BV vs. Flow Traders BV
Performance |
| Timeline |
| Avantium Holding |
| Flow Traders BV |
Avantium Holding and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avantium Holding and Flow Traders
The main advantage of trading using opposite Avantium Holding and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avantium Holding 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.| Avantium Holding vs. SPEAR Investments I | Avantium Holding vs. Tetragon Financial Group | Avantium Holding vs. Reinet Investments SCA | Avantium Holding vs. BE Semiconductor Industries |
| Flow Traders vs. Accsys Technologies | Flow Traders vs. Sligro Food Group | Flow Traders vs. Triodos Bank NV | Flow Traders vs. AMG Advanced Metallurgical |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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