Correlation Between Carmat SA and KBC Ancora
Can any of the company-specific risk be diversified away by investing in both Carmat SA and KBC Ancora 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 Carmat SA and KBC Ancora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and KBC Ancora SCA, you can compare the effects of market volatilities on Carmat SA and KBC Ancora 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 Carmat SA with a short position of KBC Ancora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and KBC Ancora.
Diversification Opportunities for Carmat SA and KBC Ancora
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carmat and KBC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and KBC Ancora SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Ancora SCA and Carmat SA 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 Carmat SA are associated (or correlated) with KBC Ancora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Ancora SCA has no effect on the direction of Carmat SA i.e., Carmat SA and KBC Ancora go up and down completely randomly.
Pair Corralation between Carmat SA and KBC Ancora
Assuming the 90 days horizon Carmat SA is expected to under-perform the KBC Ancora. In addition to that, Carmat SA is 3.71 times more volatile than KBC Ancora SCA. It trades about -0.37 of its total potential returns per unit of risk. KBC Ancora SCA is currently generating about 0.0 per unit of volatility. If you would invest 4,680 in KBC Ancora SCA on August 28, 2024 and sell it today you would lose (10.00) from holding KBC Ancora SCA or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. KBC Ancora SCA
Performance |
| Timeline |
| Carmat SA |
| KBC Ancora SCA |
Carmat SA and KBC Ancora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and KBC Ancora
The main advantage of trading using opposite Carmat SA and KBC Ancora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, KBC Ancora 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 KBC Ancora will offset losses from the drop in KBC Ancora's long position.| Carmat SA vs. American Eagle Outfitters | Carmat SA vs. Computer And Technologies | Carmat SA vs. VARIOUS EATERIES LS | Carmat SA vs. FANDIFI TECHNOLOGY P |
| KBC Ancora vs. The Bank of | KBC Ancora vs. Superior Plus Corp | KBC Ancora vs. NMI Holdings | KBC Ancora vs. Origin Agritech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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