Correlation Between Crédit Agricole and KBC Group
Can any of the company-specific risk be diversified away by investing in both Crédit Agricole and KBC Group 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 Crédit Agricole and KBC Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crdit Agricole SA and KBC Group NV, you can compare the effects of market volatilities on Crédit Agricole and KBC Group 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 Crédit Agricole with a short position of KBC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crédit Agricole and KBC Group.
Diversification Opportunities for Crédit Agricole and KBC Group
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crédit and KBC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Crdit Agricole SA and KBC Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Group NV and Crédit Agricole 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 Crdit Agricole SA are associated (or correlated) with KBC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Group NV has no effect on the direction of Crédit Agricole i.e., Crédit Agricole and KBC Group go up and down completely randomly.
Pair Corralation between Crédit Agricole and KBC Group
Assuming the 90 days horizon Crdit Agricole SA is expected to generate 1.0 times more return on investment than KBC Group. However, Crédit Agricole is 1.0 times more volatile than KBC Group NV. It trades about 0.06 of its potential returns per unit of risk. KBC Group NV is currently generating about 0.04 per unit of risk. If you would invest 906.00 in Crdit Agricole SA on October 15, 2024 and sell it today you would earn a total of 445.00 from holding Crdit Agricole SA or generate 49.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crdit Agricole SA vs. KBC Group NV
Performance |
| Timeline |
| Crdit Agricole SA |
| KBC Group NV |
Crédit Agricole and KBC Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crédit Agricole and KBC Group
The main advantage of trading using opposite Crédit Agricole and KBC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crédit Agricole position performs unexpectedly, KBC Group 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 KBC Group will offset losses from the drop in KBC Group's long position.| Crédit Agricole vs. Sterling Construction | Crédit Agricole vs. AM EAGLE OUTFITTERS | Crédit Agricole vs. Daito Trust Construction | Crédit Agricole vs. Hanison Construction Holdings |
| KBC Group vs. URBAN OUTFITTERS | KBC Group vs. Gaztransport Technigaz SA | KBC Group vs. Gold Road Resources | KBC Group vs. Fast Retailing Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |