Correlation Between KBC Ancora and Sofina Socit
Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Sofina Socit 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 Sofina Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Ancora and Sofina Socit Anonyme, you can compare the effects of market volatilities on KBC Ancora and Sofina Socit 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 Sofina Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Sofina Socit.
Diversification Opportunities for KBC Ancora and Sofina Socit
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between KBC and Sofina is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme 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 Sofina Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of KBC Ancora i.e., KBC Ancora and Sofina Socit go up and down completely randomly.
Pair Corralation between KBC Ancora and Sofina Socit
Assuming the 90 days trading horizon KBC Ancora is expected to generate 0.86 times more return on investment than Sofina Socit. However, KBC Ancora is 1.16 times less risky than Sofina Socit. It trades about 0.18 of its potential returns per unit of risk. Sofina Socit Anonyme is currently generating about 0.11 per unit of risk. If you would invest 5,090 in KBC Ancora on December 25, 2024 and sell it today you would earn a total of 730.00 from holding KBC Ancora or generate 14.34% 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. Sofina Socit Anonyme
Performance |
| Timeline |
| KBC Ancora |
| Sofina Socit Anonyme |
KBC Ancora and Sofina Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Ancora and Sofina Socit
The main advantage of trading using opposite KBC Ancora and Sofina Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Ancora position performs unexpectedly, Sofina Socit 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 Sofina Socit will offset losses from the drop in Sofina Socit'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 |
| Sofina Socit vs. Keyware Technologies NV | Sofina Socit vs. Ion Beam Applications | Sofina Socit vs. Retail Estates | Sofina Socit vs. EVS Broadcast Equipment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |