Correlation Between KBC Groep and Jyske Bank
Can any of the company-specific risk be diversified away by investing in both KBC Groep and Jyske Bank 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 Jyske Bank 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 Jyske Bank AS, you can compare the effects of market volatilities on KBC Groep and Jyske Bank 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Groep and Jyske Bank.
Diversification Opportunities for KBC Groep and Jyske Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBC and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBC Groep NV and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of KBC Groep i.e., KBC Groep and Jyske Bank go up and down completely randomly.
Pair Corralation between KBC Groep and Jyske Bank
Assuming the 90 days horizon KBC Groep is expected to generate 2.03 times less return on investment than Jyske Bank. But when comparing it to its historical volatility, KBC Groep NV is 1.02 times less risky than Jyske Bank. It trades about 0.03 of its potential returns per unit of risk. Jyske Bank AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Jyske Bank AS on November 2, 2024 and sell it today you would earn a total of 461.00 from holding Jyske Bank AS or generate 47.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
KBC Groep NV vs. Jyske Bank AS
Performance |
| Timeline |
| KBC Groep NV |
| Jyske Bank AS |
KBC Groep and Jyske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBC Groep and Jyske Bank
The main advantage of trading using opposite KBC Groep and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Groep position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank'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 |
| Jyske Bank vs. Baraboo Bancorporation | Jyske Bank vs. Schweizerische Nationalbank | Jyske Bank vs. Danske Bank AS | Jyske Bank vs. Absa Group Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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