Correlation Between NV Bekaert and Keyware Technologies
Can any of the company-specific risk be diversified away by investing in both NV Bekaert and Keyware Technologies 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 Keyware Technologies 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 Keyware Technologies NV, you can compare the effects of market volatilities on NV Bekaert and Keyware Technologies 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 Keyware Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NV Bekaert and Keyware Technologies.
Diversification Opportunities for NV Bekaert and Keyware Technologies
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BEKB and Keyware is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding NV Bekaert SA and Keyware Technologies NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyware Technologies 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 Keyware Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyware Technologies has no effect on the direction of NV Bekaert i.e., NV Bekaert and Keyware Technologies go up and down completely randomly.
Pair Corralation between NV Bekaert and Keyware Technologies
Assuming the 90 days trading horizon NV Bekaert SA is expected to generate 1.13 times more return on investment than Keyware Technologies. However, NV Bekaert is 1.13 times more volatile than Keyware Technologies NV. It trades about 0.03 of its potential returns per unit of risk. Keyware Technologies NV is currently generating about -0.25 per unit of risk. If you would invest 3,228 in NV Bekaert SA on September 18, 2024 and sell it today you would earn a total of 18.00 from holding NV Bekaert SA or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NV Bekaert SA vs. Keyware Technologies NV
Performance |
| Timeline |
| NV Bekaert SA |
| Keyware Technologies |
NV Bekaert and Keyware Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NV Bekaert and Keyware Technologies
The main advantage of trading using opposite NV Bekaert and Keyware Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NV Bekaert position performs unexpectedly, Keyware Technologies 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 Keyware Technologies will offset losses from the drop in Keyware Technologies' long position.| NV Bekaert vs. Solvay SA | NV Bekaert vs. Ackermans Van Haaren | NV Bekaert vs. Barco NV | NV Bekaert vs. Etablissementen Franz Colruyt |
| Keyware Technologies vs. Crescent NV | Keyware Technologies vs. Ion Beam Applications | Keyware Technologies vs. Nyrstar NV | Keyware Technologies vs. AGFA Gevaert 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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