Correlation Between Accentis and Banque Nationale
Can any of the company-specific risk be diversified away by investing in both Accentis and Banque Nationale 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 Accentis and Banque Nationale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accentis and Banque nationale de, you can compare the effects of market volatilities on Accentis and Banque Nationale 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 Accentis with a short position of Banque Nationale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accentis and Banque Nationale.
Diversification Opportunities for Accentis and Banque Nationale
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accentis and Banque is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Accentis and Banque nationale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque nationale and Accentis 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 Accentis are associated (or correlated) with Banque Nationale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque nationale has no effect on the direction of Accentis i.e., Accentis and Banque Nationale go up and down completely randomly.
Pair Corralation between Accentis and Banque Nationale
Assuming the 90 days trading horizon Accentis is expected to generate 1.34 times more return on investment than Banque Nationale. However, Accentis is 1.34 times more volatile than Banque nationale de. It trades about -0.05 of its potential returns per unit of risk. Banque nationale de is currently generating about -0.46 per unit of risk. If you would invest 3.10 in Accentis on November 4, 2024 and sell it today you would lose (0.10) from holding Accentis or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accentis vs. Banque nationale de
Performance |
| Timeline |
| Accentis |
| Banque nationale |
Accentis and Banque Nationale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accentis and Banque Nationale
The main advantage of trading using opposite Accentis and Banque Nationale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accentis position performs unexpectedly, Banque Nationale 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 Banque Nationale will offset losses from the drop in Banque Nationale's long position.The idea behind Accentis and Banque nationale de 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.| Banque Nationale vs. GIMV NV | Banque Nationale vs. Sofina Socit Anonyme | Banque Nationale vs. Groep Brussel Lambert | Banque Nationale vs. Tubize Fin |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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