Correlation Between Ackermans Van and Jensen
Can any of the company-specific risk be diversified away by investing in both Ackermans Van and Jensen 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 Ackermans Van and Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ackermans Van Haaren and Jensen Group, you can compare the effects of market volatilities on Ackermans Van and Jensen 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 Ackermans Van with a short position of Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackermans Van and Jensen.
Diversification Opportunities for Ackermans Van and Jensen
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ackermans and Jensen is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ackermans Van Haaren and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group and Ackermans Van 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 Ackermans Van Haaren are associated (or correlated) with Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Group has no effect on the direction of Ackermans Van i.e., Ackermans Van and Jensen go up and down completely randomly.
Pair Corralation between Ackermans Van and Jensen
Assuming the 90 days trading horizon Ackermans Van Haaren is expected to under-perform the Jensen. But the stock apears to be less risky and, when comparing its historical volatility, Ackermans Van Haaren is 1.69 times less risky than Jensen. The stock trades about -0.16 of its potential returns per unit of risk. The Jensen Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,180 in Jensen Group on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Jensen Group or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ackermans Van Haaren vs. Jensen Group
Performance |
| Timeline |
| Ackermans Van Haaren |
| Jensen Group |
Ackermans Van and Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackermans Van and Jensen
The main advantage of trading using opposite Ackermans Van and Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackermans Van position performs unexpectedly, Jensen 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 Jensen will offset losses from the drop in Jensen's long position.| Ackermans Van vs. Sofina Socit Anonyme | Ackermans Van vs. Groep Brussel Lambert | Ackermans Van vs. Brederode SA | Ackermans Van vs. Solvay SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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