Correlation Between GIMV NV and Atenor SA
Can any of the company-specific risk be diversified away by investing in both GIMV NV and Atenor SA 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 GIMV NV and Atenor SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GIMV NV and Atenor SA, you can compare the effects of market volatilities on GIMV NV and Atenor SA 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 GIMV NV with a short position of Atenor SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIMV NV and Atenor SA.
Diversification Opportunities for GIMV NV and Atenor SA
Poor diversification
The 3 months correlation between GIMV and Atenor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and Atenor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atenor SA and GIMV 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 GIMV NV are associated (or correlated) with Atenor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atenor SA has no effect on the direction of GIMV NV i.e., GIMV NV and Atenor SA go up and down completely randomly.
Pair Corralation between GIMV NV and Atenor SA
Assuming the 90 days trading horizon GIMV NV is expected to generate 0.55 times more return on investment than Atenor SA. However, GIMV NV is 1.8 times less risky than Atenor SA. It trades about 0.0 of its potential returns per unit of risk. Atenor SA is currently generating about -0.09 per unit of risk. If you would invest 4,126 in GIMV NV on September 1, 2024 and sell it today you would lose (71.00) from holding GIMV NV or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GIMV NV vs. Atenor SA
Performance |
| Timeline |
| GIMV NV |
| Atenor SA |
GIMV NV and Atenor SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GIMV NV and Atenor SA
The main advantage of trading using opposite GIMV NV and Atenor SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GIMV NV position performs unexpectedly, Atenor SA 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 Atenor SA will offset losses from the drop in Atenor SA's long position.| GIMV NV vs. Groep Brussel Lambert | GIMV NV vs. Ackermans Van Haaren | GIMV NV vs. Sofina Socit Anonyme | GIMV NV vs. Brederode SA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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