Correlation Between KBC Ancora and Groep Brussel
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Groep Brussel 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 Groep Brussel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora and Groep Brussel Lambert, you can compare the effects of market volatilities on KBC Ancora and Groep Brussel 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 Groep Brussel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Groep Brussel.
Diversification Opportunities for KBC Ancora and Groep Brussel
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between KBC and Groep is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora and Groep Brussel Lambert in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groep Brussel Lambert 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 Groep Brussel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groep Brussel Lambert has no effect on the direction of KBC Ancora i.e., KBC Ancora and Groep Brussel go up and down completely randomly.
Pair Corralation between KBC Ancora and Groep Brussel
Assuming the 90 days trading horizon KBC Ancora is expected to generate 0.87 times more return on investment than Groep Brussel. However, KBC Ancora is 1.15 times less risky than Groep Brussel. It trades about 0.05 of its potential returns per unit of risk. Groep Brussel Lambert is currently generating about -0.18 per unit of risk. If you would invest 4,685 in KBC Ancora on August 27, 2024 and sell it today you would earn a total of 45.00 from holding KBC Ancora or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBC Ancora vs. Groep Brussel Lambert
Performance |
| Timeline |
| KBC Ancora |
| Groep Brussel Lambert |
KBC Ancora and Groep Brussel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and Groep Brussel
The main advantage of trading using opposite KBC Ancora and Groep Brussel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, Groep Brussel 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 Groep Brussel will offset losses from the drop in Groep Brussel's long position.| KBC Ancora vs. ageas SANV | KBC Ancora vs. Groep Brussel Lambert | KBC Ancora vs. Ackermans Van Haaren | KBC Ancora vs. GIMV NV |
| Groep Brussel vs. Ackermans Van Haaren | Groep Brussel vs. Sofina Socit Anonyme | Groep Brussel vs. ageas SANV | Groep Brussel vs. Solvay SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |