Correlation Between Koninklijke Ahold and AHOLD DELHAIADR16
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By analyzing existing cross correlation between Koninklijke Ahold Delhaize and AHOLD DELHAIADR16 EO 25, you can compare the effects of market volatilities on Koninklijke Ahold and AHOLD DELHAIADR16 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 AHOLD DELHAIADR16. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Ahold and AHOLD DELHAIADR16.
Diversification Opportunities for Koninklijke Ahold and AHOLD DELHAIADR16
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koninklijke and AHOLD is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Ahold Delhaize and AHOLD DELHAIADR16 EO 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AHOLD DELHAIADR16 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 AHOLD DELHAIADR16. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AHOLD DELHAIADR16 has no effect on the direction of Koninklijke Ahold i.e., Koninklijke Ahold and AHOLD DELHAIADR16 go up and down completely randomly.
Pair Corralation between Koninklijke Ahold and AHOLD DELHAIADR16
Assuming the 90 days trading horizon Koninklijke Ahold is expected to generate 1.07 times less return on investment than AHOLD DELHAIADR16. But when comparing it to its historical volatility, Koninklijke Ahold Delhaize is 1.32 times less risky than AHOLD DELHAIADR16. It trades about 0.09 of its potential returns per unit of risk. AHOLD DELHAIADR16 EO 25 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,529 in AHOLD DELHAIADR16 EO 25 on August 29, 2024 and sell it today you would earn a total of 691.00 from holding AHOLD DELHAIADR16 EO 25 or generate 27.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Koninklijke Ahold Delhaize vs. AHOLD DELHAIADR16 EO 25
Performance |
| Timeline |
| Koninklijke Ahold |
| AHOLD DELHAIADR16 |
Koninklijke Ahold and AHOLD DELHAIADR16 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Ahold and AHOLD DELHAIADR16
The main advantage of trading using opposite Koninklijke Ahold and AHOLD DELHAIADR16 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Ahold position performs unexpectedly, AHOLD DELHAIADR16 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 AHOLD DELHAIADR16 will offset losses from the drop in AHOLD DELHAIADR16's long position.| Koninklijke Ahold vs. TESCO PLC LS 0633333 | Koninklijke Ahold vs. Superior Plus Corp | Koninklijke Ahold vs. NMI Holdings | Koninklijke Ahold vs. SIVERS SEMICONDUCTORS AB |
| AHOLD DELHAIADR16 vs. TESCO PLC LS 0633333 | AHOLD DELHAIADR16 vs. Superior Plus Corp | AHOLD DELHAIADR16 vs. NMI Holdings | AHOLD DELHAIADR16 vs. SIVERS SEMICONDUCTORS AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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