Correlation Between Barco NV and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Barco NV and Ion Beam 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 Barco NV and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barco NV and Ion Beam Applications, you can compare the effects of market volatilities on Barco NV and Ion Beam 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 Barco NV with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barco NV and Ion Beam.
Diversification Opportunities for Barco NV and Ion Beam
Very good diversification
The 3 months correlation between Barco and Ion is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Barco NV and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Barco NV 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 Barco NV are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Barco NV i.e., Barco NV and Ion Beam go up and down completely randomly.
Pair Corralation between Barco NV and Ion Beam
Assuming the 90 days trading horizon Barco NV is expected to under-perform the Ion Beam. But the stock apears to be less risky and, when comparing its historical volatility, Barco NV is 1.6 times less risky than Ion Beam. The stock trades about -0.37 of its potential returns per unit of risk. The Ion Beam Applications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,386 in Ion Beam Applications on August 27, 2024 and sell it today you would lose (12.00) from holding Ion Beam Applications or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barco NV vs. Ion Beam Applications
Performance |
| Timeline |
| Barco NV |
| Ion Beam Applications |
Barco NV and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barco NV and Ion Beam
The main advantage of trading using opposite Barco NV and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barco NV position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Barco NV vs. Kinepolis Group NV | Barco NV vs. ageas SANV | Barco NV vs. Ackermans Van Haaren | Barco NV vs. Solvay SA |
| Ion Beam vs. EVS Broadcast Equipment | Ion Beam vs. NV Bekaert SA | Ion Beam vs. Melexis NV | Ion Beam vs. Barco NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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