Correlation Between BEL Small and Oxurion NV
Can any of the company-specific risk be diversified away by investing in both BEL Small and Oxurion 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 BEL Small and Oxurion NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEL Small and Oxurion NV, you can compare the effects of market volatilities on BEL Small and Oxurion 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 BEL Small with a short position of Oxurion NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEL Small and Oxurion NV.
Diversification Opportunities for BEL Small and Oxurion NV
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BEL and Oxurion is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BEL Small and Oxurion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxurion NV 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 Oxurion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxurion NV has no effect on the direction of BEL Small i.e., BEL Small and Oxurion NV go up and down completely randomly.
Pair Corralation between BEL Small and Oxurion NV
Assuming the 90 days trading horizon BEL Small is expected to under-perform the Oxurion NV. But the index apears to be less risky and, when comparing its historical volatility, BEL Small is 90.25 times less risky than Oxurion NV. The index trades about -0.09 of its potential returns per unit of risk. The Oxurion NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 17,200 in Oxurion NV on August 30, 2024 and sell it today you would lose (17,170) from holding Oxurion NV or give up 99.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BEL Small vs. Oxurion NV
Performance |
| Timeline |
BEL Small and Oxurion NV Volatility Contrast
Predicted Return Density |
| Returns |
BEL Small
Pair trading matchups for BEL Small
Oxurion NV
Pair trading matchups for Oxurion NV
Pair Trading with BEL Small and Oxurion NV
The main advantage of trading using opposite BEL Small and Oxurion NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEL Small position performs unexpectedly, Oxurion 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 Oxurion NV will offset losses from the drop in Oxurion NV's long position.| BEL Small vs. Ion Beam Applications | BEL Small vs. Retail Estates | BEL Small vs. Keyware Technologies NV | BEL Small vs. Vastned Retail Belgium |
| Oxurion NV vs. Biocartis Group NV | Oxurion NV vs. Celyad SA | Oxurion NV vs. Argen X | Oxurion 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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