Correlation Between Koninklijke Ahold and Sendas Distribuidora
Can any of the company-specific risk be diversified away by investing in both Koninklijke Ahold and Sendas Distribuidora 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 Koninklijke Ahold and Sendas Distribuidora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke Ahold Delhaize and Sendas Distribuidora SA, you can compare the effects of market volatilities on Koninklijke Ahold and Sendas Distribuidora 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 Koninklijke Ahold with a short position of Sendas Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Ahold and Sendas Distribuidora.
Diversification Opportunities for Koninklijke Ahold and Sendas Distribuidora
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koninklijke and Sendas is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Ahold Delhaize and Sendas Distribuidora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendas Distribuidora and Koninklijke Ahold 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 Koninklijke Ahold Delhaize are associated (or correlated) with Sendas Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendas Distribuidora has no effect on the direction of Koninklijke Ahold i.e., Koninklijke Ahold and Sendas Distribuidora go up and down completely randomly.
Pair Corralation between Koninklijke Ahold and Sendas Distribuidora
If you would invest 3,466 in Koninklijke Ahold Delhaize on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Koninklijke Ahold Delhaize or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Koninklijke Ahold Delhaize vs. Sendas Distribuidora SA
Performance |
| Timeline |
| Koninklijke Ahold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sendas Distribuidora |
Koninklijke Ahold and Sendas Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Ahold and Sendas Distribuidora
The main advantage of trading using opposite Koninklijke Ahold and Sendas Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Ahold position performs unexpectedly, Sendas Distribuidora 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 Sendas Distribuidora will offset losses from the drop in Sendas Distribuidora's long position.| Koninklijke Ahold vs. Sendas Distribuidora SA | Koninklijke Ahold vs. Dingdong ADR | Koninklijke Ahold vs. Albertsons Companies | Koninklijke Ahold vs. Village Super Market |
| Sendas Distribuidora vs. Innovative Food Hldg | Sendas Distribuidora vs. Calavo Growers | Sendas Distribuidora vs. The Chefs Warehouse | Sendas Distribuidora vs. AMCON Distributing |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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