Correlation Between Ion Beam and Kinepolis Group
Can any of the company-specific risk be diversified away by investing in both Ion Beam and Kinepolis Group 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 Ion Beam and Kinepolis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Kinepolis Group NV, you can compare the effects of market volatilities on Ion Beam and Kinepolis Group 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 Ion Beam with a short position of Kinepolis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Kinepolis Group.
Diversification Opportunities for Ion Beam and Kinepolis Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ion and Kinepolis is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Kinepolis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinepolis Group NV and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Kinepolis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinepolis Group NV has no effect on the direction of Ion Beam i.e., Ion Beam and Kinepolis Group go up and down completely randomly.
Pair Corralation between Ion Beam and Kinepolis Group
Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 0.86 times more return on investment than Kinepolis Group. However, Ion Beam Applications is 1.16 times less risky than Kinepolis Group. It trades about 0.0 of its potential returns per unit of risk. Kinepolis Group NV is currently generating about -0.05 per unit of risk. If you would invest 1,342 in Ion Beam Applications on November 4, 2024 and sell it today you would lose (2.00) from holding Ion Beam Applications or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Kinepolis Group NV
Performance |
| Timeline |
| Ion Beam Applications |
| Kinepolis Group NV |
Ion Beam and Kinepolis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Kinepolis Group
The main advantage of trading using opposite Ion Beam and Kinepolis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, Kinepolis Group 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 Kinepolis Group will offset losses from the drop in Kinepolis Group's long position.| Ion Beam vs. EVS Broadcast Equipment | Ion Beam vs. NV Bekaert SA | Ion Beam vs. Melexis NV | Ion Beam vs. Barco NV |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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