Correlation Between Kinepolis Group and Biocartis Group

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

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

Diversification Opportunities for Kinepolis Group and Biocartis Group

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Correlation Coefficient

Kinepolis Group  Biocartis Group

Pay attention - limited upside

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

Pair Corralation between Kinepolis Group and Biocartis Group

If you would invest  3,805  in Kinepolis Group NV on October 12, 2024 and sell it today you would earn a total of  105.00  from holding Kinepolis Group NV or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kinepolis Group NV  vs.  Biocartis Group NV

Kinepolis Group NV

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Kinepolis Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Kinepolis Group is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Biocartis Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biocartis Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Biocartis Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kinepolis Group and Biocartis Group

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

The idea behind Kinepolis Group NV and Biocartis 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.