Correlation Between Ekopak BV and Proximus
Can any of the company-specific risk be diversified away by investing in both Ekopak BV and Proximus 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 Ekopak BV and Proximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekopak BV and Proximus NV, you can compare the effects of market volatilities on Ekopak BV and Proximus 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 Ekopak BV with a short position of Proximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekopak BV and Proximus.
Diversification Opportunities for Ekopak BV and Proximus
Excellent diversification
The 3 months correlation between Ekopak and Proximus is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ekopak BV and Proximus NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proximus NV and Ekopak BV 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 Ekopak BV are associated (or correlated) with Proximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proximus NV has no effect on the direction of Ekopak BV i.e., Ekopak BV and Proximus go up and down completely randomly.
Pair Corralation between Ekopak BV and Proximus
Assuming the 90 days trading horizon Ekopak BV is expected to under-perform the Proximus. In addition to that, Ekopak BV is 1.13 times more volatile than Proximus NV. It trades about -0.49 of its total potential returns per unit of risk. Proximus NV is currently generating about 0.0 per unit of volatility. If you would invest 674.00 in Proximus NV on August 27, 2024 and sell it today you would lose (1.00) from holding Proximus NV or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekopak BV vs. Proximus NV
Performance |
| Timeline |
| Ekopak BV |
| Proximus NV |
Ekopak BV and Proximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekopak BV and Proximus
The main advantage of trading using opposite Ekopak BV and Proximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekopak BV position performs unexpectedly, Proximus 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 Proximus will offset losses from the drop in Proximus' long position.| Ekopak BV vs. Xior Student Housing | Ekopak BV vs. DIeteren Group SA | Ekopak BV vs. Melexis NV | Ekopak BV vs. DEME Group NV |
| Proximus vs. Bpost NV | Proximus vs. Etablissementen Franz Colruyt | Proximus vs. ageas SANV | Proximus vs. KBC Groep 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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