Correlation Between Ackermans Van and KBC Groep
Can any of the company-specific risk be diversified away by investing in both Ackermans Van and KBC Groep 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 Ackermans Van and KBC Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ackermans Van Haaren and KBC Groep NV, you can compare the effects of market volatilities on Ackermans Van and KBC Groep 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 Ackermans Van with a short position of KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackermans Van and KBC Groep.
Diversification Opportunities for Ackermans Van and KBC Groep
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ackermans and KBC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ackermans Van Haaren and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV and Ackermans Van 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 Ackermans Van Haaren are associated (or correlated) with KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of Ackermans Van i.e., Ackermans Van and KBC Groep go up and down completely randomly.
Pair Corralation between Ackermans Van and KBC Groep
Assuming the 90 days trading horizon Ackermans Van Haaren is expected to generate 0.75 times more return on investment than KBC Groep. However, Ackermans Van Haaren is 1.33 times less risky than KBC Groep. It trades about 0.1 of its potential returns per unit of risk. KBC Groep NV is currently generating about 0.03 per unit of risk. If you would invest 16,465 in Ackermans Van Haaren on August 23, 2024 and sell it today you would earn a total of 2,075 from holding Ackermans Van Haaren or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ackermans Van Haaren vs. KBC Groep NV
Performance |
| Timeline |
| Ackermans Van Haaren |
| KBC Groep NV |
Ackermans Van and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackermans Van and KBC Groep
The main advantage of trading using opposite Ackermans Van and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackermans Van position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep's long position.| Ackermans Van vs. Sofina Socit Anonyme | Ackermans Van vs. Groep Brussel Lambert | Ackermans Van vs. Brederode SA | Ackermans Van vs. Solvay SA |
| KBC Groep vs. ageas SANV | KBC Groep vs. Solvay SA | KBC Groep vs. Etablissementen Franz Colruyt | KBC Groep vs. Groep Brussel Lambert |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |