Correlation Between Alfen Beheer and Kinepolis Group
Can any of the company-specific risk be diversified away by investing in both Alfen Beheer and Kinepolis Group 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 Alfen Beheer and Kinepolis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfen Beheer BV and Kinepolis Group NV, you can compare the effects of market volatilities on Alfen Beheer and Kinepolis Group 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 Alfen Beheer with a short position of Kinepolis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen Beheer and Kinepolis Group.
Diversification Opportunities for Alfen Beheer and Kinepolis Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alfen and Kinepolis is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Alfen Beheer BV and Kinepolis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinepolis Group NV and Alfen Beheer 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 Alfen Beheer BV are associated (or correlated) with Kinepolis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinepolis Group NV has no effect on the direction of Alfen Beheer i.e., Alfen Beheer and Kinepolis Group go up and down completely randomly.
Pair Corralation between Alfen Beheer and Kinepolis Group
Assuming the 90 days trading horizon Alfen Beheer BV is expected to generate 3.99 times more return on investment than Kinepolis Group. However, Alfen Beheer is 3.99 times more volatile than Kinepolis Group NV. It trades about -0.03 of its potential returns per unit of risk. Kinepolis Group NV is currently generating about -0.15 per unit of risk. If you would invest 1,226 in Alfen Beheer BV on September 1, 2024 and sell it today you would lose (86.00) from holding Alfen Beheer BV or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfen Beheer BV vs. Kinepolis Group NV
Performance |
| Timeline |
| Alfen Beheer BV |
| Kinepolis Group NV |
Alfen Beheer and Kinepolis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfen Beheer and Kinepolis Group
The main advantage of trading using opposite Alfen Beheer and Kinepolis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen Beheer position performs unexpectedly, Kinepolis Group 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 Kinepolis Group will offset losses from the drop in Kinepolis Group's long position.| Alfen Beheer vs. Fastned BV | Alfen Beheer vs. Basic Fit NV | Alfen Beheer vs. BE Semiconductor Industries | Alfen Beheer vs. ASM International NV |
| Kinepolis Group vs. Home Invest Belgium | Kinepolis Group vs. Immolease Trust NV | Kinepolis Group vs. Vastned Retail Belgium | Kinepolis Group vs. Shurgard Self Storage |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |