Correlation Between KBC Groep and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both KBC Groep and First Hawaiian 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 KBC Groep and First Hawaiian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBC Groep NV and First Hawaiian, you can compare the effects of market volatilities on KBC Groep and First Hawaiian 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 KBC Groep with a short position of First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Groep and First Hawaiian.
Diversification Opportunities for KBC Groep and First Hawaiian
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KBC and First is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding KBC Groep NV and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian and KBC Groep 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 KBC Groep NV are associated (or correlated) with First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of KBC Groep i.e., KBC Groep and First Hawaiian go up and down completely randomly.
Pair Corralation between KBC Groep and First Hawaiian
Assuming the 90 days horizon KBC Groep NV is expected to generate 1.21 times more return on investment than First Hawaiian. However, KBC Groep is 1.21 times more volatile than First Hawaiian. It trades about 0.22 of its potential returns per unit of risk. First Hawaiian is currently generating about -0.04 per unit of risk. If you would invest 3,850 in KBC Groep NV on December 26, 2024 and sell it today you would earn a total of 930.00 from holding KBC Groep NV or generate 24.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
KBC Groep NV vs. First Hawaiian
Performance |
Timeline |
KBC Groep NV |
Risk-Adjusted Performance
Solid
Weak | Strong |
First Hawaiian |
KBC Groep and First Hawaiian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KBC Groep and First Hawaiian
The main advantage of trading using opposite KBC Groep and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBC Groep position performs unexpectedly, First Hawaiian 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 First Hawaiian will offset losses from the drop in First Hawaiian's long position.KBC Groep vs. DBS Group Holdings | KBC Groep vs. Overseas Chinese Banking | KBC Groep vs. China Minsh | KBC Groep vs. Nordea Bank Abp |
First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage Financial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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