Correlation Between KBC Ancora and Blackstone

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

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

Diversification Opportunities for KBC Ancora and Blackstone

0.07

Correlation Coefficient

KBC Ancora  Blackstone

Significant diversification

The 3 months correlation between KBC and Blackstone is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora SCA and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and KBC Ancora 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 Ancora SCA are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of KBC Ancora i.e., KBC Ancora and Blackstone go up and down completely randomly.

Pair Corralation between KBC Ancora and Blackstone

Assuming the 90 days horizon KBC Ancora is expected to generate 4.45 times less return on investment than Blackstone. But when comparing it to its historical volatility, KBC Ancora SCA is 1.62 times less risky than Blackstone. It trades about 0.04 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  13,971  in Blackstone Group on September 24, 2024 and sell it today you would earn a total of  2,289  from holding Blackstone Group or generate 16.38% return on investment over 90 days.

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

KBC Ancora SCA  vs.  Blackstone Group

KBC Ancora SCA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Ancora SCA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, KBC Ancora is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Blackstone Group

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Blackstone reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KBC Ancora and Blackstone

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

The idea behind KBC Ancora SCA and Blackstone Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.