Correlation Between Banque Nationale and Ackermans Van
Can any of the company-specific risk be diversified away by investing in both Banque Nationale and Ackermans Van 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 Banque Nationale and Ackermans Van into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque nationale de and Ackermans Van Haaren, you can compare the effects of market volatilities on Banque Nationale and Ackermans Van 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 Banque Nationale with a short position of Ackermans Van. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Nationale and Ackermans Van.
Diversification Opportunities for Banque Nationale and Ackermans Van
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banque and Ackermans is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Banque nationale de and Ackermans Van Haaren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackermans Van Haaren and Banque Nationale 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 Banque nationale de are associated (or correlated) with Ackermans Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackermans Van Haaren has no effect on the direction of Banque Nationale i.e., Banque Nationale and Ackermans Van go up and down completely randomly.
Pair Corralation between Banque Nationale and Ackermans Van
Assuming the 90 days trading horizon Banque nationale de is expected to under-perform the Ackermans Van. In addition to that, Banque Nationale is 1.28 times more volatile than Ackermans Van Haaren. It trades about -0.11 of its total potential returns per unit of risk. Ackermans Van Haaren is currently generating about 0.08 per unit of volatility. If you would invest 15,388 in Ackermans Van Haaren on November 3, 2024 and sell it today you would earn a total of 3,372 from holding Ackermans Van Haaren or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Banque nationale de vs. Ackermans Van Haaren
Performance |
| Timeline |
| Banque nationale |
| Ackermans Van Haaren |
Banque Nationale and Ackermans Van Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Nationale and Ackermans Van
The main advantage of trading using opposite Banque Nationale and Ackermans Van positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Nationale position performs unexpectedly, Ackermans Van 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 Ackermans Van will offset losses from the drop in Ackermans Van's long position.| Banque Nationale vs. GIMV NV | Banque Nationale vs. Sofina Socit Anonyme | Banque Nationale vs. Groep Brussel Lambert | Banque Nationale vs. Tubize Fin |
| Ackermans Van vs. Sofina Socit Anonyme | Ackermans Van vs. Groep Brussel Lambert | Ackermans Van vs. Brederode SA | Ackermans Van 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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