Correlation Between KBC Ancora and Inclusio Sca
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Inclusio Sca 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 Inclusio Sca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora and Inclusio Sca, you can compare the effects of market volatilities on KBC Ancora and Inclusio Sca 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 Inclusio Sca. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Inclusio Sca.
Diversification Opportunities for KBC Ancora and Inclusio Sca
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBC and Inclusio is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora and Inclusio Sca in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inclusio Sca 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 Inclusio Sca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inclusio Sca has no effect on the direction of KBC Ancora i.e., KBC Ancora and Inclusio Sca go up and down completely randomly.
Pair Corralation between KBC Ancora and Inclusio Sca
Assuming the 90 days trading horizon KBC Ancora is expected to generate 1.79 times less return on investment than Inclusio Sca. But when comparing it to its historical volatility, KBC Ancora is 3.15 times less risky than Inclusio Sca. It trades about 0.18 of its potential returns per unit of risk. Inclusio Sca is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,285 in Inclusio Sca on October 23, 2024 and sell it today you would earn a total of 45.00 from holding Inclusio Sca or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
KBC Ancora vs. Inclusio Sca
Performance |
| Timeline |
| KBC Ancora |
| Inclusio Sca |
KBC Ancora and Inclusio Sca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and Inclusio Sca
The main advantage of trading using opposite KBC Ancora and Inclusio Sca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, Inclusio Sca 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 Inclusio Sca will offset losses from the drop in Inclusio Sca'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 |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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