Correlation Between KBC Groep and FinecoBank Banca
Can any of the company-specific risk be diversified away by investing in both KBC Groep and FinecoBank Banca 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 Groep and FinecoBank Banca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Groep NV and FinecoBank Banca Fineco, you can compare the effects of market volatilities on KBC Groep and FinecoBank Banca 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 Groep with a short position of FinecoBank Banca. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Groep and FinecoBank Banca.
Diversification Opportunities for KBC Groep and FinecoBank Banca
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBC and FinecoBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBC Groep NV and FinecoBank Banca Fineco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinecoBank Banca Fineco and KBC Groep 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 Groep NV are associated (or correlated) with FinecoBank Banca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinecoBank Banca Fineco has no effect on the direction of KBC Groep i.e., KBC Groep and FinecoBank Banca go up and down completely randomly.
Pair Corralation between KBC Groep and FinecoBank Banca
Assuming the 90 days horizon KBC Groep is expected to generate 1.65 times less return on investment than FinecoBank Banca. But when comparing it to its historical volatility, KBC Groep NV is 2.5 times less risky than FinecoBank Banca. It trades about 0.05 of its potential returns per unit of risk. FinecoBank Banca Fineco is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,195 in FinecoBank Banca Fineco on August 26, 2024 and sell it today you would earn a total of 253.00 from holding FinecoBank Banca Fineco or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 57.95% |
| Values | Daily Returns |
KBC Groep NV vs. FinecoBank Banca Fineco
Performance |
| Timeline |
| KBC Groep NV |
| FinecoBank Banca Fineco |
KBC Groep and FinecoBank Banca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Groep and FinecoBank Banca
The main advantage of trading using opposite KBC Groep and FinecoBank Banca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Groep position performs unexpectedly, FinecoBank Banca 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 FinecoBank Banca will offset losses from the drop in FinecoBank Banca's long position.| KBC Groep vs. DBS Group Holdings | KBC Groep vs. United Overseas Bank | KBC Groep vs. Overseas Chinese Banking | KBC Groep vs. China Minsh |
| FinecoBank Banca vs. Alpha Bank SA | FinecoBank Banca vs. Deutsche Bank AG | FinecoBank Banca vs. Western Alliance Bancorporation | FinecoBank Banca vs. KBC Groep NV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |