Correlation Between KBC Ancora and United Utilities

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

Diversification Opportunities for KBC Ancora and United Utilities

0.39

Correlation Coefficient

KBC Ancora  United Utilities

Weak diversification

The 3 months correlation between KBC and United is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora SCA and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities 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 United Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Utilities has no effect on the direction of KBC Ancora i.e., KBC Ancora and United Utilities go up and down completely randomly.

Pair Corralation between KBC Ancora and United Utilities

Assuming the 90 days horizon KBC Ancora SCA is expected to generate 0.8 times more return on investment than United Utilities. However, KBC Ancora SCA is 1.24 times less risky than United Utilities. It trades about 0.15 of its potential returns per unit of risk. United Utilities Group is currently generating about 0.05 per unit of risk. If you would invest  6,000  in KBC Ancora SCA on July 9, 2025 and sell it today you would earn a total of  680.00  from holding KBC Ancora SCA or generate 11.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

KBC Ancora SCA  vs.  United Utilities Group

KBC Ancora SCA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Ancora SCA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, KBC Ancora may actually be approaching a critical reversion point that can send shares even higher in November 2025.

United Utilities

Risk-Adjusted Performance

Soft

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

Pair Trading with KBC Ancora and United Utilities

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

The idea behind KBC Ancora SCA and United Utilities 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.