Correlation Between DIeteren Group and Belysse Group

Can any of the company-specific risk be diversified away by investing in both DIeteren Group and Belysse 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 DIeteren Group and Belysse Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DIeteren Group SA and Belysse Group NV, you can compare the effects of market volatilities on DIeteren Group and Belysse 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 DIeteren Group with a short position of Belysse Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIeteren Group and Belysse Group.

Diversification Opportunities for DIeteren Group and Belysse Group

-0.68

Correlation Coefficient

DIeteren Group  Belysse Group

Excellent diversification

The 3 months correlation between DIeteren and Belysse is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding DIeteren Group SA and Belysse Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belysse Group NV and DIeteren 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 DIeteren Group SA are associated (or correlated) with Belysse Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belysse Group NV has no effect on the direction of DIeteren Group i.e., DIeteren Group and Belysse Group go up and down completely randomly.

Pair Corralation between DIeteren Group and Belysse Group

Assuming the 90 days trading horizon DIeteren Group SA is expected to generate 1.12 times more return on investment than Belysse Group. However, DIeteren Group is 1.12 times more volatile than Belysse Group NV. It trades about 0.12 of its potential returns per unit of risk. Belysse Group NV is currently generating about -0.09 per unit of risk. If you would invest  12,909  in DIeteren Group SA on December 4, 2024 and sell it today you would earn a total of  3,301  from holding DIeteren Group SA or generate 25.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

DIeteren Group SA  vs.  Belysse Group NV

DIeteren Group SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DIeteren Group SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, DIeteren Group reported solid returns over the last few months and may actually be approaching a breakup point.

Belysse Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Belysse Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with DIeteren Group and Belysse Group

The main advantage of trading using opposite DIeteren Group and Belysse Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIeteren Group position performs unexpectedly, Belysse 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 Belysse Group will offset losses from the drop in Belysse Group's long position.

The idea behind DIeteren Group SA and Belysse Group NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.