Correlation Between Ageas SANV and NV Bekaert
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and NV Bekaert 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 Ageas SANV and NV Bekaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and NV Bekaert SA, you can compare the effects of market volatilities on Ageas SANV and NV Bekaert 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 Ageas SANV with a short position of NV Bekaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and NV Bekaert.
Diversification Opportunities for Ageas SANV and NV Bekaert
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and BEKB is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and NV Bekaert SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NV Bekaert SA and Ageas SANV 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 ageas SANV are associated (or correlated) with NV Bekaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NV Bekaert SA has no effect on the direction of Ageas SANV i.e., Ageas SANV and NV Bekaert go up and down completely randomly.
Pair Corralation between Ageas SANV and NV Bekaert
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.86 times more return on investment than NV Bekaert. However, ageas SANV is 1.17 times less risky than NV Bekaert. It trades about 0.06 of its potential returns per unit of risk. NV Bekaert SA is currently generating about 0.01 per unit of risk. If you would invest 3,638 in ageas SANV on August 27, 2024 and sell it today you would earn a total of 1,228 from holding ageas SANV or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. NV Bekaert SA
Performance |
| Timeline |
| ageas SANV |
| NV Bekaert SA |
Ageas SANV and NV Bekaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and NV Bekaert
The main advantage of trading using opposite Ageas SANV and NV Bekaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, NV Bekaert 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 NV Bekaert will offset losses from the drop in NV Bekaert's long position.| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
| NV Bekaert vs. Solvay SA | NV Bekaert vs. Ackermans Van Haaren | NV Bekaert vs. Barco NV | NV Bekaert vs. Etablissementen Franz Colruyt |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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