Correlation Between Bpost NV and Belysse Group
Can any of the company-specific risk be diversified away by investing in both Bpost NV and Belysse Group 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 Bpost NV and Belysse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bpost NV and Belysse Group NV, you can compare the effects of market volatilities on Bpost NV and Belysse Group 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 Bpost NV with a short position of Belysse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bpost NV and Belysse Group.
Diversification Opportunities for Bpost NV and Belysse Group
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bpost and Belysse is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bpost NV and Belysse Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belysse Group NV and Bpost NV 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 Bpost NV are associated (or correlated) with Belysse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belysse Group NV has no effect on the direction of Bpost NV i.e., Bpost NV and Belysse Group go up and down completely randomly.
Pair Corralation between Bpost NV and Belysse Group
Assuming the 90 days trading horizon Bpost NV is expected to under-perform the Belysse Group. But the stock apears to be less risky and, when comparing its historical volatility, Bpost NV is 1.88 times less risky than Belysse Group. The stock trades about -0.22 of its potential returns per unit of risk. The Belysse Group NV is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Belysse Group NV on September 1, 2024 and sell it today you would lose (15.00) from holding Belysse Group NV or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.46% |
| Values | Daily Returns |
Bpost NV vs. Belysse Group NV
Performance |
| Timeline |
| Bpost NV |
| Belysse Group NV |
Bpost NV and Belysse Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bpost NV and Belysse Group
The main advantage of trading using opposite Bpost NV and Belysse Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bpost NV position performs unexpectedly, Belysse Group 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 Belysse Group will offset losses from the drop in Belysse Group's long position.| Bpost NV vs. Proximus NV | Bpost NV vs. ageas SANV | Bpost NV vs. Etablissementen Franz Colruyt | Bpost NV vs. KBC Groep NV |
| Belysse Group vs. Jensen Group | Belysse Group vs. Deceuninck | Belysse Group vs. Biocartis Group NV | Belysse Group vs. Hyloris Developmentsen 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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