Correlation Between NV Bekaert and Nyrstar NV
Can any of the company-specific risk be diversified away by investing in both NV Bekaert and Nyrstar NV 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 Nyrstar NV 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 Nyrstar NV, you can compare the effects of market volatilities on NV Bekaert and Nyrstar NV 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 Nyrstar NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of NV Bekaert and Nyrstar NV.
Diversification Opportunities for NV Bekaert and Nyrstar NV
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEKB and Nyrstar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding NV Bekaert SA and Nyrstar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyrstar NV 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 Nyrstar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyrstar NV has no effect on the direction of NV Bekaert i.e., NV Bekaert and Nyrstar NV go up and down completely randomly.
Pair Corralation between NV Bekaert and Nyrstar NV
Assuming the 90 days trading horizon NV Bekaert is expected to generate 20.84 times less return on investment than Nyrstar NV. But when comparing it to its historical volatility, NV Bekaert SA is 4.12 times less risky than Nyrstar NV. It trades about 0.02 of its potential returns per unit of risk. Nyrstar NV is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Nyrstar NV on October 26, 2024 and sell it today you would earn a total of 1.50 from holding Nyrstar NV or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NV Bekaert SA vs. Nyrstar NV
Performance |
| Timeline |
| NV Bekaert SA |
| Nyrstar NV |
NV Bekaert and Nyrstar NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NV Bekaert and Nyrstar NV
The main advantage of trading using opposite NV Bekaert and Nyrstar NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NV Bekaert position performs unexpectedly, Nyrstar NV 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 Nyrstar NV will offset losses from the drop in Nyrstar NV'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 |
| Nyrstar NV vs. NV Bekaert SA | Nyrstar NV vs. AGFA Gevaert NV | Nyrstar NV vs. ageas SANV | Nyrstar NV vs. Exmar 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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