Correlation Between Banimmo SA and Immobel
Can any of the company-specific risk be diversified away by investing in both Banimmo SA and Immobel 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 Banimmo SA and Immobel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banimmo SA and Immobel, you can compare the effects of market volatilities on Banimmo SA and Immobel 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 Banimmo SA with a short position of Immobel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banimmo SA and Immobel.
Diversification Opportunities for Banimmo SA and Immobel
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Banimmo and Immobel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Banimmo SA and Immobel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobel and Banimmo SA 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 Banimmo SA are associated (or correlated) with Immobel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobel has no effect on the direction of Banimmo SA i.e., Banimmo SA and Immobel go up and down completely randomly.
Pair Corralation between Banimmo SA and Immobel
Assuming the 90 days trading horizon Banimmo SA is expected to generate 0.57 times more return on investment than Immobel. However, Banimmo SA is 1.75 times less risky than Immobel. It trades about -0.04 of its potential returns per unit of risk. Immobel is currently generating about -0.07 per unit of risk. If you would invest 398.00 in Banimmo SA on September 3, 2024 and sell it today you would lose (104.00) from holding Banimmo SA or give up 26.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banimmo SA vs. Immobel
Performance |
| Timeline |
| Banimmo SA |
| Immobel |
Banimmo SA and Immobel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banimmo SA and Immobel
The main advantage of trading using opposite Banimmo SA and Immobel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banimmo SA position performs unexpectedly, Immobel 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 Immobel will offset losses from the drop in Immobel's long position.| Banimmo SA vs. Atenor SA | Banimmo SA vs. Immobel | Banimmo SA vs. EVS Broadcast Equipment | Banimmo SA vs. Home Invest Belgium |
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 CEOs Directory module to screen CEOs from public companies around the world.
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