Correlation Between Banque Nationale and Fluxys Belgium
Can any of the company-specific risk be diversified away by investing in both Banque Nationale and Fluxys Belgium 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 Fluxys Belgium 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 Fluxys Belgium, you can compare the effects of market volatilities on Banque Nationale and Fluxys Belgium 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 Fluxys Belgium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Nationale and Fluxys Belgium.
Diversification Opportunities for Banque Nationale and Fluxys Belgium
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banque and Fluxys is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Banque nationale de and Fluxys Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluxys Belgium 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 Fluxys Belgium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluxys Belgium has no effect on the direction of Banque Nationale i.e., Banque Nationale and Fluxys Belgium go up and down completely randomly.
Pair Corralation between Banque Nationale and Fluxys Belgium
Assuming the 90 days trading horizon Banque nationale de is expected to under-perform the Fluxys Belgium. But the stock apears to be less risky and, when comparing its historical volatility, Banque nationale de is 2.39 times less risky than Fluxys Belgium. The stock trades about -0.18 of its potential returns per unit of risk. The Fluxys Belgium is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,375 in Fluxys Belgium on September 13, 2024 and sell it today you would earn a total of 305.00 from holding Fluxys Belgium or generate 22.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque nationale de vs. Fluxys Belgium
Performance |
| Timeline |
| Banque nationale |
| Fluxys Belgium |
Banque Nationale and Fluxys Belgium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Nationale and Fluxys Belgium
The main advantage of trading using opposite Banque Nationale and Fluxys Belgium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Nationale position performs unexpectedly, Fluxys Belgium 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 Fluxys Belgium will offset losses from the drop in Fluxys Belgium'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 |
| Fluxys Belgium vs. Elia Group SANV | Fluxys Belgium vs. GIMV NV | Fluxys Belgium vs. Cofinimmo SA | Fluxys Belgium vs. TINC Comm VA |
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.
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