Correlation Between BEL Small and Etablissementen Franz
Can any of the company-specific risk be diversified away by investing in both BEL Small and Etablissementen Franz 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 BEL Small and Etablissementen Franz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEL Small and Etablissementen Franz Colruyt, you can compare the effects of market volatilities on BEL Small and Etablissementen Franz 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 BEL Small with a short position of Etablissementen Franz. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEL Small and Etablissementen Franz.
Diversification Opportunities for BEL Small and Etablissementen Franz
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEL and Etablissementen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BEL Small and Etablissementen Franz Colruyt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etablissementen Franz and BEL Small 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 BEL Small are associated (or correlated) with Etablissementen Franz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etablissementen Franz has no effect on the direction of BEL Small i.e., BEL Small and Etablissementen Franz go up and down completely randomly.
Pair Corralation between BEL Small and Etablissementen Franz
Assuming the 90 days trading horizon BEL Small is expected to under-perform the Etablissementen Franz. But the index apears to be less risky and, when comparing its historical volatility, BEL Small is 1.89 times less risky than Etablissementen Franz. The index trades about -0.1 of its potential returns per unit of risk. The Etablissementen Franz Colruyt is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,940 in Etablissementen Franz Colruyt on August 31, 2024 and sell it today you would earn a total of 1,358 from holding Etablissementen Franz Colruyt or generate 46.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
BEL Small vs. Etablissementen Franz Colruyt
Performance |
| Timeline |
BEL Small and Etablissementen Franz Volatility Contrast
Predicted Return Density |
| Returns |
BEL Small
Pair trading matchups for BEL Small
Etablissementen Franz Colruyt
Pair trading matchups for Etablissementen Franz
Pair Trading with BEL Small and Etablissementen Franz
The main advantage of trading using opposite BEL Small and Etablissementen Franz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEL Small position performs unexpectedly, Etablissementen Franz 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 Etablissementen Franz will offset losses from the drop in Etablissementen Franz's long position.| BEL Small vs. Vastned Retail Belgium | BEL Small vs. Retail Estates | BEL Small vs. Home Invest Belgium | BEL Small vs. Shurgard Self Storage |
| Etablissementen Franz vs. KBC Groep NV | Etablissementen Franz vs. Proximus NV | Etablissementen Franz vs. ageas SANV | Etablissementen Franz 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |