Correlation Between EVS Broadcast and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Ageas SANV 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 EVS Broadcast and Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and ageas SANV, you can compare the effects of market volatilities on EVS Broadcast and Ageas SANV 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 EVS Broadcast with a short position of Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Ageas SANV.
Diversification Opportunities for EVS Broadcast and Ageas SANV
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EVS and Ageas is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Ageas SANV go up and down completely randomly.
Pair Corralation between EVS Broadcast and Ageas SANV
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.24 times more return on investment than Ageas SANV. However, EVS Broadcast is 1.24 times more volatile than ageas SANV. It trades about 0.06 of its potential returns per unit of risk. ageas SANV is currently generating about 0.05 per unit of risk. If you would invest 1,948 in EVS Broadcast Equipment on August 30, 2024 and sell it today you would earn a total of 907.00 from holding EVS Broadcast Equipment or generate 46.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. ageas SANV
Performance |
| Timeline |
| EVS Broadcast Equipment |
| ageas SANV |
EVS Broadcast and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Ageas SANV
The main advantage of trading using opposite EVS Broadcast and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Ageas SANV 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 Ageas SANV will offset losses from the drop in Ageas SANV's long position.| EVS Broadcast vs. Keyware Technologies NV | EVS Broadcast vs. Vastned Retail Belgium | EVS Broadcast vs. Ion Beam Applications |
| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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