Correlation Between Ackermans Van and KBC Ancora
Can any of the company-specific risk be diversified away by investing in both Ackermans Van and KBC Ancora 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 Ancora 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 Ancora, you can compare the effects of market volatilities on Ackermans Van and KBC Ancora 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 Ancora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackermans Van and KBC Ancora.
Diversification Opportunities for Ackermans Van and KBC Ancora
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ackermans and KBC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ackermans Van Haaren and KBC Ancora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Ancora 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 Ancora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Ancora has no effect on the direction of Ackermans Van i.e., Ackermans Van and KBC Ancora go up and down completely randomly.
Pair Corralation between Ackermans Van and KBC Ancora
Assuming the 90 days trading horizon Ackermans Van is expected to generate 1.36 times less return on investment than KBC Ancora. But when comparing it to its historical volatility, Ackermans Van Haaren is 1.2 times less risky than KBC Ancora. It trades about 0.11 of its potential returns per unit of risk. KBC Ancora is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,395 in KBC Ancora on August 27, 2024 and sell it today you would earn a total of 1,335 from holding KBC Ancora or generate 39.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ackermans Van Haaren vs. KBC Ancora
Performance |
| Timeline |
| Ackermans Van Haaren |
| KBC Ancora |
Ackermans Van and KBC Ancora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackermans Van and KBC Ancora
The main advantage of trading using opposite Ackermans Van and KBC Ancora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackermans Van position performs unexpectedly, KBC Ancora 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 Ancora will offset losses from the drop in KBC Ancora'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 Ancora vs. KBC Groep NV | KBC Ancora vs. ageas SANV | KBC Ancora vs. Groep Brussel Lambert | KBC Ancora vs. Ackermans Van Haaren |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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