Correlation Between Jyske Bank and KBC Groep
Can any of the company-specific risk be diversified away by investing in both Jyske Bank and KBC Groep 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 Jyske Bank and KBC Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and KBC Groep NV, you can compare the effects of market volatilities on Jyske Bank and KBC Groep 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 Jyske Bank with a short position of KBC Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and KBC Groep.
Diversification Opportunities for Jyske Bank and KBC Groep
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jyske and KBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank AS and KBC Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Groep NV and Jyske Bank 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 Jyske Bank AS are associated (or correlated) with KBC Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Groep NV has no effect on the direction of Jyske Bank i.e., Jyske Bank and KBC Groep go up and down completely randomly.
Pair Corralation between Jyske Bank and KBC Groep
If you would invest 3,801 in KBC Groep NV on November 2, 2024 and sell it today you would earn a total of 74.00 from holding KBC Groep NV or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jyske Bank AS vs. KBC Groep NV
Performance |
| Timeline |
| Jyske Bank AS |
| KBC Groep NV |
Jyske Bank and KBC Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and KBC Groep
The main advantage of trading using opposite Jyske Bank and KBC Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank position performs unexpectedly, KBC Groep 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 KBC Groep will offset losses from the drop in KBC Groep's long position.| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
| KBC Groep vs. DBS Group Holdings | KBC Groep vs. United Overseas Bank | KBC Groep vs. Overseas Chinese Banking | KBC Groep vs. China Minsh |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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