Correlation Between Immolease Trust and Kinepolis Group
Can any of the company-specific risk be diversified away by investing in both Immolease Trust and Kinepolis 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 Immolease Trust and Kinepolis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immolease Trust NV and Kinepolis Group NV, you can compare the effects of market volatilities on Immolease Trust and Kinepolis 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 Immolease Trust with a short position of Kinepolis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immolease Trust and Kinepolis Group.
Diversification Opportunities for Immolease Trust and Kinepolis Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immolease and Kinepolis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Immolease Trust NV and Kinepolis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinepolis Group NV and Immolease Trust 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 Immolease Trust NV are associated (or correlated) with Kinepolis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinepolis Group NV has no effect on the direction of Immolease Trust i.e., Immolease Trust and Kinepolis Group go up and down completely randomly.
Pair Corralation between Immolease Trust and Kinepolis Group
Assuming the 90 days trading horizon Immolease Trust NV is expected to under-perform the Kinepolis Group. But the stock apears to be less risky and, when comparing its historical volatility, Immolease Trust NV is 1.32 times less risky than Kinepolis Group. The stock trades about -0.19 of its potential returns per unit of risk. The Kinepolis Group NV is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,875 in Kinepolis Group NV on October 25, 2024 and sell it today you would lose (40.00) from holding Kinepolis Group NV or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.45% |
| Values | Daily Returns |
Immolease Trust NV vs. Kinepolis Group NV
Performance |
| Timeline |
| Immolease Trust NV |
| Kinepolis Group NV |
Immolease Trust and Kinepolis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immolease Trust and Kinepolis Group
The main advantage of trading using opposite Immolease Trust and Kinepolis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immolease Trust position performs unexpectedly, Kinepolis 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 Kinepolis Group will offset losses from the drop in Kinepolis Group's long position.| Immolease Trust vs. Immobiliere Distri Land NV | Immolease Trust vs. Immobel | Immolease Trust vs. Accentis | Immolease Trust vs. Exmar NV |
| Kinepolis Group vs. Keyware Technologies NV | Kinepolis Group vs. Ion Beam Applications | Kinepolis Group vs. Retail Estates | Kinepolis Group vs. Immolease Trust 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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