Correlation Between GIMV NV and Banimmo SA
Can any of the company-specific risk be diversified away by investing in both GIMV NV and Banimmo 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 Banimmo 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 Banimmo SA, you can compare the effects of market volatilities on GIMV NV and Banimmo 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 Banimmo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GIMV NV and Banimmo SA.
Diversification Opportunities for GIMV NV and Banimmo SA
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GIMV and Banimmo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GIMV NV and Banimmo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banimmo 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 Banimmo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banimmo SA has no effect on the direction of GIMV NV i.e., GIMV NV and Banimmo SA go up and down completely randomly.
Pair Corralation between GIMV NV and Banimmo SA
Assuming the 90 days trading horizon GIMV NV is expected to generate 2.19 times more return on investment than Banimmo SA. However, GIMV NV is 2.19 times more volatile than Banimmo SA. It trades about 0.18 of its potential returns per unit of risk. Banimmo SA is currently generating about -0.03 per unit of risk. If you would invest 3,795 in GIMV NV on September 2, 2024 and sell it today you would earn a total of 260.00 from holding GIMV NV or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GIMV NV vs. Banimmo SA
Performance |
| Timeline |
| GIMV NV |
| Banimmo SA |
GIMV NV and Banimmo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GIMV NV and Banimmo SA
The main advantage of trading using opposite GIMV NV and Banimmo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GIMV NV position performs unexpectedly, Banimmo 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 Banimmo SA will offset losses from the drop in Banimmo 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |