Correlation Between Basic Fit and Shell PLC
Can any of the company-specific risk be diversified away by investing in both Basic Fit and Shell PLC 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 Basic Fit and Shell PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Basic Fit NV and Shell PLC, you can compare the effects of market volatilities on Basic Fit and Shell PLC 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 Basic Fit with a short position of Shell PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Fit and Shell PLC.
Diversification Opportunities for Basic Fit and Shell PLC
Modest diversification
The 3 months correlation between Basic and Shell is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Basic Fit NV and Shell PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shell PLC and Basic Fit 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 Basic Fit NV are associated (or correlated) with Shell PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shell PLC has no effect on the direction of Basic Fit i.e., Basic Fit and Shell PLC go up and down completely randomly.
Pair Corralation between Basic Fit and Shell PLC
Assuming the 90 days trading horizon Basic Fit NV is expected to generate 1.44 times more return on investment than Shell PLC. However, Basic Fit is 1.44 times more volatile than Shell PLC. It trades about 0.14 of its potential returns per unit of risk. Shell PLC is currently generating about 0.1 per unit of risk. If you would invest 2,680 in Basic Fit NV on November 25, 2025 and sell it today you would earn a total of 464.00 from holding Basic Fit NV or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Basic Fit NV vs. Shell PLC
Performance |
| Timeline |
| Basic Fit NV |
| Shell PLC |
Basic Fit and Shell PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Fit and Shell PLC
The main advantage of trading using opposite Basic Fit and Shell PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Fit position performs unexpectedly, Shell PLC 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 Shell PLC will offset losses from the drop in Shell PLC's long position.| Basic Fit vs. SPEAR Investments I | Basic Fit vs. Fastned BV | Basic Fit vs. Kendrion NV | Basic Fit vs. Ebusco Holding BV |
| Shell PLC vs. Koninklijke Ahold Delhaize | Shell PLC vs. Unilever PLC | Shell PLC vs. ING Groep NV | Shell PLC vs. ASML Holding NV |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |