Correlation Between Campine and Banimmo SA
Can any of the company-specific risk be diversified away by investing in both Campine and Banimmo SA 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 Campine and Banimmo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campine and Banimmo SA, you can compare the effects of market volatilities on Campine and Banimmo SA 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 Campine with a short position of Banimmo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campine and Banimmo SA.
Diversification Opportunities for Campine and Banimmo SA
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Campine and Banimmo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Campine and Banimmo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banimmo SA and Campine 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 Campine are associated (or correlated) with Banimmo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banimmo SA has no effect on the direction of Campine i.e., Campine and Banimmo SA go up and down completely randomly.
Pair Corralation between Campine and Banimmo SA
Assuming the 90 days trading horizon Campine is expected to generate 1.65 times more return on investment than Banimmo SA. However, Campine is 1.65 times more volatile than Banimmo SA. It trades about 0.34 of its potential returns per unit of risk. Banimmo SA is currently generating about -0.15 per unit of risk. If you would invest 8,350 in Campine on September 5, 2024 and sell it today you would earn a total of 850.00 from holding Campine or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campine vs. Banimmo SA
Performance |
| Timeline |
| Campine |
| Banimmo SA |
Campine and Banimmo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campine and Banimmo SA
The main advantage of trading using opposite Campine and Banimmo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campine position performs unexpectedly, Banimmo SA 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 Banimmo SA will offset losses from the drop in Banimmo SA's long position.| Campine vs. Miko NV | Campine vs. Tessenderlo | Campine vs. Van de Velde | Campine vs. EVS Broadcast Equipment |
| Banimmo SA vs. Aedifica | Banimmo SA vs. Cofinimmo SA | Banimmo SA vs. Warehouses de Pauw | Banimmo SA vs. VGP 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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