Correlation Between Exor NV and Corbion NV
Can any of the company-specific risk be diversified away by investing in both Exor NV and Corbion NV 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 Exor NV and Corbion NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exor NV and Corbion NV, you can compare the effects of market volatilities on Exor NV and Corbion NV 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 Exor NV with a short position of Corbion NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exor NV and Corbion NV.
Diversification Opportunities for Exor NV and Corbion NV
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exor and Corbion is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Exor NV and Corbion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbion NV and Exor NV 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 Exor NV are associated (or correlated) with Corbion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbion NV has no effect on the direction of Exor NV i.e., Exor NV and Corbion NV go up and down completely randomly.
Pair Corralation between Exor NV and Corbion NV
Assuming the 90 days trading horizon Exor NV is expected to under-perform the Corbion NV. But the stock apears to be less risky and, when comparing its historical volatility, Exor NV is 1.39 times less risky than Corbion NV. The stock trades about -0.08 of its potential returns per unit of risk. The Corbion NV is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,296 in Corbion NV on September 2, 2024 and sell it today you would lose (98.00) from holding Corbion NV or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exor NV vs. Corbion NV
Performance |
| Timeline |
| Exor NV |
| Corbion NV |
Exor NV and Corbion NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exor NV and Corbion NV
The main advantage of trading using opposite Exor NV and Corbion NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exor NV position performs unexpectedly, Corbion NV 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 Corbion NV will offset losses from the drop in Corbion NV's long position.| Exor NV vs. CM NV | Exor NV vs. BE Semiconductor Industries | Exor NV vs. Alfen Beheer BV | Exor NV vs. ASR Nederland NV |
| Corbion NV vs. Flow Traders BV | Corbion NV vs. Aalberts Industries NV | Corbion NV vs. ForFarmers NV | Corbion NV vs. TKH Group 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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