Correlation Between Tubize Fin and Campine
Can any of the company-specific risk be diversified away by investing in both Tubize Fin and Campine 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 Tubize Fin and Campine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tubize Fin and Campine, you can compare the effects of market volatilities on Tubize Fin and Campine 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 Tubize Fin with a short position of Campine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tubize Fin and Campine.
Diversification Opportunities for Tubize Fin and Campine
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tubize and Campine is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tubize Fin and Campine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campine and Tubize Fin 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 Tubize Fin are associated (or correlated) with Campine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campine has no effect on the direction of Tubize Fin i.e., Tubize Fin and Campine go up and down completely randomly.
Pair Corralation between Tubize Fin and Campine
Assuming the 90 days trading horizon Tubize Fin is expected to under-perform the Campine. In addition to that, Tubize Fin is 1.93 times more volatile than Campine. It trades about -0.12 of its total potential returns per unit of risk. Campine is currently generating about 0.05 per unit of volatility. If you would invest 8,450 in Campine on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Campine or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tubize Fin vs. Campine
Performance |
| Timeline |
| Tubize Fin |
| Campine |
Tubize Fin and Campine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tubize Fin and Campine
The main advantage of trading using opposite Tubize Fin and Campine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tubize Fin position performs unexpectedly, Campine 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 Campine will offset losses from the drop in Campine's long position.| Tubize Fin vs. EVS Broadcast Equipment | Tubize Fin vs. NV Bekaert SA | Tubize Fin vs. Melexis NV | Tubize Fin vs. Barco NV |
| Campine vs. Ackermans Van Haaren | Campine vs. NV Bekaert SA | Campine vs. Groep Brussel Lambert | Campine vs. Tubize Fin |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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