Correlation Between KBC Groep and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both KBC Groep and Ageas SANV 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 Groep and Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Groep NV and ageas SANV, you can compare the effects of market volatilities on KBC Groep and Ageas SANV 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 Groep with a short position of Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Groep and Ageas SANV.
Diversification Opportunities for KBC Groep and Ageas SANV
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between KBC and Ageas is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding KBC Groep NV and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and KBC Groep 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 Groep NV are associated (or correlated) with Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of KBC Groep i.e., KBC Groep and Ageas SANV go up and down completely randomly.
Pair Corralation between KBC Groep and Ageas SANV
Assuming the 90 days trading horizon KBC Groep NV is expected to generate 1.65 times more return on investment than Ageas SANV. However, KBC Groep is 1.65 times more volatile than ageas SANV. It trades about 0.14 of its potential returns per unit of risk. ageas SANV is currently generating about 0.0 per unit of risk. If you would invest 6,682 in KBC Groep NV on August 23, 2024 and sell it today you would earn a total of 270.00 from holding KBC Groep NV or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBC Groep NV vs. ageas SANV
Performance |
| Timeline |
| KBC Groep NV |
| ageas SANV |
KBC Groep and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Groep and Ageas SANV
The main advantage of trading using opposite KBC Groep and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Groep position performs unexpectedly, Ageas SANV 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 Ageas SANV will offset losses from the drop in Ageas SANV's long position.| KBC Groep vs. ageas SANV | KBC Groep vs. Solvay SA | KBC Groep vs. Etablissementen Franz Colruyt | KBC Groep vs. Groep Brussel Lambert |
| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |