Correlation Between Kering SA and Belden
Can any of the company-specific risk be diversified away by investing in both Kering SA and Belden 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 Kering SA and Belden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kering SA and Belden Inc, you can compare the effects of market volatilities on Kering SA and Belden 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 Kering SA with a short position of Belden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kering SA and Belden.
Diversification Opportunities for Kering SA and Belden
Average diversification
The 3 months correlation between Kering and Belden is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kering SA and Belden Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belden Inc and Kering SA 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 Kering SA are associated (or correlated) with Belden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belden Inc has no effect on the direction of Kering SA i.e., Kering SA and Belden go up and down completely randomly.
Pair Corralation between Kering SA and Belden
Assuming the 90 days horizon Kering SA is expected to under-perform the Belden. In addition to that, Kering SA is 1.4 times more volatile than Belden Inc. It trades about -0.44 of its total potential returns per unit of risk. Belden Inc is currently generating about -0.2 per unit of volatility. If you would invest 8,829 in Belden Inc on January 19, 2024 and sell it today you would lose (596.00) from holding Belden Inc or give up 6.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kering SA vs. Belden Inc
Performance |
Timeline |
Kering SA |
Belden Inc |
Kering SA and Belden Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kering SA and Belden
The main advantage of trading using opposite Kering SA and Belden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kering SA position performs unexpectedly, Belden 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 Belden will offset losses from the drop in Belden's long position.Kering SA vs. Compagnie Financiere Richemont | Kering SA vs. Kering SA | Kering SA vs. Burberry Group Plc | Kering SA vs. Swatch Group AG |
Belden vs. Clearfield | Belden vs. Comtech Telecommunications Corp | Belden vs. Knowles Cor | Belden vs. Extreme Networks |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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