Correlation Between Sipef NV and GIMV NV
Can any of the company-specific risk be diversified away by investing in both Sipef NV and GIMV NV 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 Sipef NV and GIMV NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sipef NV and GIMV NV, you can compare the effects of market volatilities on Sipef NV and GIMV NV 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 Sipef NV with a short position of GIMV NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sipef NV and GIMV NV.
Diversification Opportunities for Sipef NV and GIMV NV
Pay attention - limited upside
The 3 months correlation between Sipef and GIMV is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sipef NV and GIMV NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIMV NV and Sipef NV 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 Sipef NV are associated (or correlated) with GIMV NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIMV NV has no effect on the direction of Sipef NV i.e., Sipef NV and GIMV NV go up and down completely randomly.
Pair Corralation between Sipef NV and GIMV NV
Assuming the 90 days trading horizon Sipef NV is expected to generate 1.16 times less return on investment than GIMV NV. In addition to that, Sipef NV is 1.07 times more volatile than GIMV NV. It trades about 0.01 of its total potential returns per unit of risk. GIMV NV is currently generating about 0.01 per unit of volatility. If you would invest 3,973 in GIMV NV on August 31, 2024 and sell it today you would earn a total of 82.00 from holding GIMV NV or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Sipef NV vs. GIMV NV
Performance |
| Timeline |
| Sipef NV |
| GIMV NV |
Sipef NV and GIMV NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sipef NV and GIMV NV
The main advantage of trading using opposite Sipef NV and GIMV NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sipef NV position performs unexpectedly, GIMV NV 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 GIMV NV will offset losses from the drop in GIMV NV's long position.| Sipef NV vs. Tessenderlo | Sipef NV vs. EVS Broadcast Equipment | Sipef NV vs. Ackermans Van Haaren | Sipef NV vs. Melexis NV |
| GIMV NV vs. Groep Brussel Lambert | GIMV NV vs. Ackermans Van Haaren | GIMV NV vs. Sofina Socit Anonyme | GIMV NV vs. Brederode SA |
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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