Correlation Between KBC Ancora and Quest For
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Quest For 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 Quest For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora and Quest For Growth, you can compare the effects of market volatilities on KBC Ancora and Quest For 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 Quest For. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Quest For.
Diversification Opportunities for KBC Ancora and Quest For
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KBC and Quest is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora and Quest For Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest For Growth 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 Quest For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest For Growth has no effect on the direction of KBC Ancora i.e., KBC Ancora and Quest For go up and down completely randomly.
Pair Corralation between KBC Ancora and Quest For
Assuming the 90 days trading horizon KBC Ancora is expected to generate 22.97 times less return on investment than Quest For. But when comparing it to its historical volatility, KBC Ancora is 1.78 times less risky than Quest For. It trades about 0.02 of its potential returns per unit of risk. Quest For Growth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Quest For Growth on November 9, 2024 and sell it today you would earn a total of 23.00 from holding Quest For Growth or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KBC Ancora vs. Quest For Growth
Performance |
| Timeline |
| KBC Ancora |
| Quest For Growth |
KBC Ancora and Quest For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and Quest For
The main advantage of trading using opposite KBC Ancora and Quest For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, Quest For 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 Quest For will offset losses from the drop in Quest For'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 |
| Quest For vs. GIMV NV | Quest For vs. Brederode SA | Quest For vs. Groep Brussel Lambert | Quest For vs. Sofina Socit Anonyme |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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