Correlation Between Belimo Holding and Kardex
Can any of the company-specific risk be diversified away by investing in both Belimo Holding and Kardex 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 Belimo Holding and Kardex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belimo Holding and Kardex, you can compare the effects of market volatilities on Belimo Holding and Kardex 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 Belimo Holding with a short position of Kardex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belimo Holding and Kardex.
Diversification Opportunities for Belimo Holding and Kardex
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Belimo and Kardex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Belimo Holding and Kardex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardex and Belimo Holding 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 Belimo Holding are associated (or correlated) with Kardex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardex has no effect on the direction of Belimo Holding i.e., Belimo Holding and Kardex go up and down completely randomly.
Pair Corralation between Belimo Holding and Kardex
Assuming the 90 days trading horizon Belimo Holding is expected to generate 1.11 times more return on investment than Kardex. However, Belimo Holding is 1.11 times more volatile than Kardex. It trades about 0.15 of its potential returns per unit of risk. Kardex is currently generating about 0.04 per unit of risk. If you would invest 41,440 in Belimo Holding on September 1, 2024 and sell it today you would earn a total of 17,510 from holding Belimo Holding or generate 42.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belimo Holding vs. Kardex
Performance |
| Timeline |
| Belimo Holding |
| Kardex |
Belimo Holding and Kardex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belimo Holding and Kardex
The main advantage of trading using opposite Belimo Holding and Kardex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belimo Holding position performs unexpectedly, Kardex 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 Kardex will offset losses from the drop in Kardex's long position.| Belimo Holding vs. EMS CHEMIE HOLDING AG | Belimo Holding vs. Geberit AG | Belimo Holding vs. VAT Group AG | Belimo Holding vs. Interroll Holding AG |
| Kardex vs. Interroll Holding AG | Kardex vs. VAT Group AG | Kardex vs. Comet Holding AG | Kardex vs. Bossard Holding AG |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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