Correlation Between KBC Ancora and Banque Nationale
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Banque Nationale 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 Banque Nationale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora and Banque nationale de, you can compare the effects of market volatilities on KBC Ancora and Banque Nationale 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 Banque Nationale. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Banque Nationale.
Diversification Opportunities for KBC Ancora and Banque Nationale
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBC and Banque is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora and Banque nationale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque nationale 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 are associated (or correlated) with Banque Nationale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque nationale has no effect on the direction of KBC Ancora i.e., KBC Ancora and Banque Nationale go up and down completely randomly.
Pair Corralation between KBC Ancora and Banque Nationale
Assuming the 90 days trading horizon KBC Ancora is expected to generate 0.85 times more return on investment than Banque Nationale. However, KBC Ancora is 1.18 times less risky than Banque Nationale. It trades about 0.11 of its potential returns per unit of risk. Banque nationale de is currently generating about -0.17 per unit of risk. If you would invest 4,490 in KBC Ancora on October 25, 2024 and sell it today you would earn a total of 670.00 from holding KBC Ancora or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBC Ancora vs. Banque nationale de
Performance |
| Timeline |
| KBC Ancora |
| Banque nationale |
KBC Ancora and Banque Nationale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and Banque Nationale
The main advantage of trading using opposite KBC Ancora and Banque Nationale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, Banque Nationale 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 Banque Nationale will offset losses from the drop in Banque Nationale's long position.| KBC Ancora vs. KBC Groep NV | KBC Ancora vs. ageas SANV | KBC Ancora vs. Groep Brussel Lambert | KBC Ancora vs. Ackermans Van Haaren |
| Banque Nationale vs. GIMV NV | Banque Nationale vs. Sofina Socit Anonyme | Banque Nationale vs. Groep Brussel Lambert | Banque Nationale vs. Tubize Fin |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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