Correlation Between Belysse Group and Exmar NV
Can any of the company-specific risk be diversified away by investing in both Belysse Group and Exmar 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 Belysse Group and Exmar NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belysse Group NV and Exmar NV, you can compare the effects of market volatilities on Belysse Group and Exmar 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 Belysse Group with a short position of Exmar NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belysse Group and Exmar NV.
Diversification Opportunities for Belysse Group and Exmar NV
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Belysse and Exmar is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Belysse Group NV and Exmar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exmar NV and Belysse Group 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 Belysse Group NV are associated (or correlated) with Exmar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmar NV has no effect on the direction of Belysse Group i.e., Belysse Group and Exmar NV go up and down completely randomly.
Pair Corralation between Belysse Group and Exmar NV
Assuming the 90 days trading horizon Belysse Group NV is expected to under-perform the Exmar NV. In addition to that, Belysse Group is 1.47 times more volatile than Exmar NV. It trades about -0.17 of its total potential returns per unit of risk. Exmar NV is currently generating about 0.09 per unit of volatility. If you would invest 763.00 in Exmar NV on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Exmar NV or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Belysse Group NV vs. Exmar NV
Performance |
| Timeline |
| Belysse Group NV |
| Exmar NV |
Belysse Group and Exmar NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belysse Group and Exmar NV
The main advantage of trading using opposite Belysse Group and Exmar NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belysse Group position performs unexpectedly, Exmar 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 Exmar NV will offset losses from the drop in Exmar NV's long position.| Belysse Group vs. Biocartis Group NV | Belysse Group vs. Celyad SA | Belysse Group vs. Argen X | Belysse Group vs. Exmar NV |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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