Correlation Between NV Bekaert and Groep Brussel
Can any of the company-specific risk be diversified away by investing in both NV Bekaert and Groep Brussel 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 NV Bekaert and Groep Brussel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NV Bekaert SA and Groep Brussel Lambert, you can compare the effects of market volatilities on NV Bekaert and Groep Brussel 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 NV Bekaert with a short position of Groep Brussel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NV Bekaert and Groep Brussel.
Diversification Opportunities for NV Bekaert and Groep Brussel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BEKB and Groep is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NV Bekaert SA and Groep Brussel Lambert in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groep Brussel Lambert and NV Bekaert 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 NV Bekaert SA are associated (or correlated) with Groep Brussel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groep Brussel Lambert has no effect on the direction of NV Bekaert i.e., NV Bekaert and Groep Brussel go up and down completely randomly.
Pair Corralation between NV Bekaert and Groep Brussel
Assuming the 90 days trading horizon NV Bekaert SA is expected to under-perform the Groep Brussel. In addition to that, NV Bekaert is 1.88 times more volatile than Groep Brussel Lambert. It trades about -0.05 of its total potential returns per unit of risk. Groep Brussel Lambert is currently generating about -0.01 per unit of volatility. If you would invest 6,880 in Groep Brussel Lambert on November 2, 2024 and sell it today you would lose (90.00) from holding Groep Brussel Lambert or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NV Bekaert SA vs. Groep Brussel Lambert
Performance |
| Timeline |
| NV Bekaert SA |
| Groep Brussel Lambert |
NV Bekaert and Groep Brussel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NV Bekaert and Groep Brussel
The main advantage of trading using opposite NV Bekaert and Groep Brussel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NV Bekaert position performs unexpectedly, Groep Brussel 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 Groep Brussel will offset losses from the drop in Groep Brussel's long position.| NV Bekaert vs. Solvay SA | NV Bekaert vs. Ackermans Van Haaren | NV Bekaert vs. Barco NV | NV Bekaert vs. Etablissementen Franz Colruyt |
| Groep Brussel vs. Ackermans Van Haaren | Groep Brussel vs. Sofina Socit Anonyme | Groep Brussel vs. ageas SANV | Groep Brussel vs. Solvay SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |