Correlation Between KBC Ancora and Phoenix Group

Can any of the company-specific risk be diversified away by investing in both KBC Ancora and Phoenix 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 KBC Ancora and Phoenix Group 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 Phoenix Group Holdings, you can compare the effects of market volatilities on KBC Ancora and Phoenix 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 KBC Ancora with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBC Ancora and Phoenix Group.

Diversification Opportunities for KBC Ancora and Phoenix Group

0.73

Correlation Coefficient

KBC Ancora  Phoenix Group

Poor diversification

The 3 months correlation between KBC and Phoenix is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora SCA and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings 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 Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of KBC Ancora i.e., KBC Ancora and Phoenix Group go up and down completely randomly.

Pair Corralation between KBC Ancora and Phoenix Group

Assuming the 90 days horizon KBC Ancora SCA is expected to generate 0.8 times more return on investment than Phoenix Group. However, KBC Ancora SCA is 1.25 times less risky than Phoenix Group. It trades about 0.21 of its potential returns per unit of risk. Phoenix Group Holdings is currently generating about 0.11 per unit of risk. If you would invest  5,176  in KBC Ancora SCA on April 22, 2025 and sell it today you would earn a total of  924.00  from holding KBC Ancora SCA or generate 17.85% return on investment over 90 days.

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

KBC Ancora SCA  vs.  Phoenix Group Holdings

KBC Ancora SCA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Ancora SCA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KBC Ancora reported solid returns over the last few months and may actually be approaching a breakup point.

Phoenix Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix Group Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Phoenix Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with KBC Ancora and Phoenix Group

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

The idea behind KBC Ancora SCA and Phoenix Group Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.