Correlation Between Kinepolis Group and Basic Fit
Can any of the company-specific risk be diversified away by investing in both Kinepolis Group and Basic Fit 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 Kinepolis Group and Basic Fit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinepolis Group NV and Basic Fit NV, you can compare the effects of market volatilities on Kinepolis Group and Basic Fit 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 Kinepolis Group with a short position of Basic Fit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinepolis Group and Basic Fit.
Diversification Opportunities for Kinepolis Group and Basic Fit
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinepolis and Basic is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kinepolis Group NV and Basic Fit NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basic Fit NV and Kinepolis Group 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 Kinepolis Group NV are associated (or correlated) with Basic Fit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basic Fit NV has no effect on the direction of Kinepolis Group i.e., Kinepolis Group and Basic Fit go up and down completely randomly.
Pair Corralation between Kinepolis Group and Basic Fit
Assuming the 90 days trading horizon Kinepolis Group NV is expected to under-perform the Basic Fit. But the stock apears to be less risky and, when comparing its historical volatility, Kinepolis Group NV is 1.29 times less risky than Basic Fit. The stock trades about -0.04 of its potential returns per unit of risk. The Basic Fit NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,282 in Basic Fit NV on November 8, 2024 and sell it today you would earn a total of 132.00 from holding Basic Fit NV or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.16% |
| Values | Daily Returns |
Kinepolis Group NV vs. Basic Fit NV
Performance |
| Timeline |
| Kinepolis Group NV |
| Basic Fit NV |
Kinepolis Group and Basic Fit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinepolis Group and Basic Fit
The main advantage of trading using opposite Kinepolis Group and Basic Fit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinepolis Group position performs unexpectedly, Basic Fit 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 Basic Fit will offset losses from the drop in Basic Fit's long position.| Kinepolis Group vs. Ion Beam Applications | Kinepolis Group vs. Vastned Retail Belgium | Kinepolis Group vs. Immolease Trust NV | Kinepolis Group vs. Shurgard Self Storage |
| Basic Fit vs. Alfen Beheer BV | Basic Fit vs. Just Eat Takeaway | Basic Fit vs. Kinepolis Group NV | Basic Fit vs. Galapagos 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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