Correlation Between Thyssenkrupp and NV Bekaert
Can any of the company-specific risk be diversified away by investing in both Thyssenkrupp and NV Bekaert 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 Thyssenkrupp and NV Bekaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thyssenkrupp AG ON and NV Bekaert SA, you can compare the effects of market volatilities on Thyssenkrupp and NV Bekaert 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 Thyssenkrupp with a short position of NV Bekaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thyssenkrupp and NV Bekaert.
Diversification Opportunities for Thyssenkrupp and NV Bekaert
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thyssenkrupp and BEKAY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thyssenkrupp AG ON and NV Bekaert SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NV Bekaert SA and Thyssenkrupp 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 Thyssenkrupp AG ON are associated (or correlated) with NV Bekaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NV Bekaert SA has no effect on the direction of Thyssenkrupp i.e., Thyssenkrupp and NV Bekaert go up and down completely randomly.
Pair Corralation between Thyssenkrupp and NV Bekaert
If you would invest 352.00 in NV Bekaert SA on October 24, 2024 and sell it today you would earn a total of 0.00 from holding NV Bekaert SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thyssenkrupp AG ON vs. NV Bekaert SA
Performance |
| Timeline |
| Thyssenkrupp AG ON |
| NV Bekaert SA |
Thyssenkrupp and NV Bekaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thyssenkrupp and NV Bekaert
The main advantage of trading using opposite Thyssenkrupp and NV Bekaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thyssenkrupp position performs unexpectedly, NV Bekaert 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 NV Bekaert will offset losses from the drop in NV Bekaert's long position.| Thyssenkrupp vs. ESAB Corp | Thyssenkrupp vs. Worthington Industries | Thyssenkrupp vs. Allegheny Technologies Incorporated | Thyssenkrupp vs. Insteel Industries |
| NV Bekaert vs. Thyssenkrupp AG ON | NV Bekaert vs. Mueller Industries | NV Bekaert vs. Insteel Industries | NV Bekaert vs. Carpenter Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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