Correlation Between KBC Group and KBC ANCORA

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

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

Diversification Opportunities for KBC Group and KBC ANCORA

0.0

Correlation Coefficient

KBC Group  KBC ANCORA

Pay attention - limited upside

The 3 months correlation between KBC and KBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBC Group NV and KBC ANCORA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC ANCORA and KBC 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 KBC Group NV are associated (or correlated) with KBC ANCORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC ANCORA has no effect on the direction of KBC Group i.e., KBC Group and KBC ANCORA go up and down completely randomly.

Pair Corralation between KBC Group and KBC ANCORA

If you would invest  5,588  in KBC Group NV on October 22, 2024 and sell it today you would earn a total of  1,744  from holding KBC Group NV or generate 31.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KBC Group NV  vs.  KBC ANCORA

KBC Group NV

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Group NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KBC Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

KBC ANCORA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KBC ANCORA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, KBC ANCORA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with KBC Group and KBC ANCORA

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

The idea behind KBC Group NV and KBC ANCORA 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.