Correlation Between KBC Ancora and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and TFS FINANCIAL 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 KBC Ancora and TFS FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora SCA and TFS FINANCIAL, you can compare the effects of market volatilities on KBC Ancora and TFS FINANCIAL 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 KBC Ancora with a short position of TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and TFS FINANCIAL.
Diversification Opportunities for KBC Ancora and TFS FINANCIAL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between KBC and TFS is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora SCA and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL and KBC Ancora 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 KBC Ancora SCA are associated (or correlated) with TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of KBC Ancora i.e., KBC Ancora and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between KBC Ancora and TFS FINANCIAL
Assuming the 90 days horizon KBC Ancora SCA is expected to generate 0.82 times more return on investment than TFS FINANCIAL. However, KBC Ancora SCA is 1.23 times less risky than TFS FINANCIAL. It trades about 0.03 of its potential returns per unit of risk. TFS FINANCIAL is currently generating about -0.02 per unit of risk. If you would invest 4,775 in KBC Ancora SCA on September 13, 2024 and sell it today you would earn a total of 25.00 from holding KBC Ancora SCA or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBC Ancora SCA vs. TFS FINANCIAL
Performance |
| Timeline |
| KBC Ancora SCA |
| TFS FINANCIAL |
KBC Ancora and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and TFS FINANCIAL
The main advantage of trading using opposite KBC Ancora and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, TFS FINANCIAL 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL's long position.| KBC Ancora vs. Vulcan Materials | KBC Ancora vs. Compagnie Plastic Omnium | KBC Ancora vs. Spirent Communications plc | KBC Ancora vs. Hyster Yale Materials Handling |
| TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |