Correlation Between BKS Bank and Exor NV
Can any of the company-specific risk be diversified away by investing in both BKS Bank and Exor 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 BKS Bank and Exor NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKS Bank AG and Exor NV, you can compare the effects of market volatilities on BKS Bank and Exor 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 BKS Bank with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and Exor NV.
Diversification Opportunities for BKS Bank and Exor NV
Very weak diversification
The 3 months correlation between BKS and Exor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and BKS Bank 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 BKS Bank AG are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of BKS Bank i.e., BKS Bank and Exor NV go up and down completely randomly.
Pair Corralation between BKS Bank and Exor NV
Assuming the 90 days trading horizon BKS Bank AG is expected to under-perform the Exor NV. But the stock apears to be less risky and, when comparing its historical volatility, BKS Bank AG is 1.82 times less risky than Exor NV. The stock trades about -0.07 of its potential returns per unit of risk. The Exor NV is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,638 in Exor NV on September 14, 2024 and sell it today you would earn a total of 807.00 from holding Exor NV or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
BKS Bank AG vs. Exor NV
Performance |
| Timeline |
| BKS Bank AG |
| Exor NV |
BKS Bank and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and Exor NV
The main advantage of trading using opposite BKS Bank and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank position performs unexpectedly, Exor 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 Exor NV will offset losses from the drop in Exor NV's long position.| BKS Bank vs. AMAG Austria Metall | BKS Bank vs. SBM Offshore NV | BKS Bank vs. Erste Group Bank | BKS Bank vs. Raiffeisen Bank International |
| Exor NV vs. Vienna Insurance Group | Exor NV vs. Raiffeisen Bank International | Exor NV vs. BKS Bank AG | Exor NV vs. SBM Offshore 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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