Correlation Between BLE Kedros and Viohalco

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

By analyzing existing cross correlation between BLE Kedros REIC and Viohalco SA, you can compare the effects of market volatilities on BLE Kedros and Viohalco 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 BLE Kedros with a short position of Viohalco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLE Kedros and Viohalco.

Diversification Opportunities for BLE Kedros and Viohalco

0.58

Correlation Coefficient

BLE Kedros  Viohalco

Very weak diversification

The 3 months correlation between BLE and Viohalco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BLE Kedros REIC and Viohalco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viohalco SA and BLE Kedros 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 BLE Kedros REIC are associated (or correlated) with Viohalco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viohalco SA has no effect on the direction of BLE Kedros i.e., BLE Kedros and Viohalco go up and down completely randomly.

Pair Corralation between BLE Kedros and Viohalco

Assuming the 90 days trading horizon BLE Kedros is expected to generate 5.49 times less return on investment than Viohalco. But when comparing it to its historical volatility, BLE Kedros REIC is 11.59 times less risky than Viohalco. It trades about 0.33 of its potential returns per unit of risk. Viohalco SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  526.00  in Viohalco SA on April 22, 2025 and sell it today you would earn a total of  98.00  from holding Viohalco SA or generate 18.63% return on investment over 90 days.

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

BLE Kedros REIC  vs.  Viohalco SA

BLE Kedros REIC

Risk-Adjusted Performance

Solid

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

Viohalco SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Viohalco SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Viohalco unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BLE Kedros and Viohalco

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

The idea behind BLE Kedros REIC and Viohalco SA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.