Correlation Between Fagron NV and Tubize Fin
Can any of the company-specific risk be diversified away by investing in both Fagron NV and Tubize Fin 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 Fagron NV and Tubize Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fagron NV and Tubize Fin, you can compare the effects of market volatilities on Fagron NV and Tubize Fin 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 Fagron NV with a short position of Tubize Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fagron NV and Tubize Fin.
Diversification Opportunities for Fagron NV and Tubize Fin
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fagron and Tubize is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fagron NV and Tubize Fin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tubize Fin and Fagron 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 Fagron NV are associated (or correlated) with Tubize Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tubize Fin has no effect on the direction of Fagron NV i.e., Fagron NV and Tubize Fin go up and down completely randomly.
Pair Corralation between Fagron NV and Tubize Fin
Assuming the 90 days trading horizon Fagron NV is expected to generate 1.2 times more return on investment than Tubize Fin. However, Fagron NV is 1.2 times more volatile than Tubize Fin. It trades about 0.4 of its potential returns per unit of risk. Tubize Fin is currently generating about 0.07 per unit of risk. If you would invest 1,658 in Fagron NV on November 4, 2024 and sell it today you would earn a total of 254.00 from holding Fagron NV or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fagron NV vs. Tubize Fin
Performance |
| Timeline |
| Fagron NV |
| Tubize Fin |
Fagron NV and Tubize Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fagron NV and Tubize Fin
The main advantage of trading using opposite Fagron NV and Tubize Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fagron NV position performs unexpectedly, Tubize Fin 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 Tubize Fin will offset losses from the drop in Tubize Fin's long position.| Fagron NV vs. Tessenderlo | Fagron NV vs. NV Bekaert SA | Fagron NV vs. Ontex Group NV | Fagron NV vs. Argen X |
| Tubize Fin vs. Groep Brussel Lambert | Tubize Fin vs. Ackermans Van Haaren | Tubize Fin vs. Tessenderlo | Tubize Fin vs. Sofina Socit Anonyme |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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