Correlation Between Koninklijke Ahold and Seven I
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By analyzing existing cross correlation between Koninklijke Ahold Delhaize and Seven i Holdings, you can compare the effects of market volatilities on Koninklijke Ahold and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Ahold and Seven I.
Diversification Opportunities for Koninklijke Ahold and Seven I
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koninklijke and Seven is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Ahold Delhaize and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of Koninklijke Ahold i.e., Koninklijke Ahold and Seven I go up and down completely randomly.
Pair Corralation between Koninklijke Ahold and Seven I
Assuming the 90 days trading horizon Koninklijke Ahold is expected to generate 3.5 times less return on investment than Seven I. But when comparing it to its historical volatility, Koninklijke Ahold Delhaize is 2.52 times less risky than Seven I. It trades about 0.15 of its potential returns per unit of risk. Seven i Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,367 in Seven i Holdings on August 29, 2024 and sell it today you would earn a total of 194.00 from holding Seven i Holdings or generate 14.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koninklijke Ahold Delhaize vs. Seven i Holdings
Performance |
| Timeline |
| Koninklijke Ahold |
| Seven i Holdings |
Koninklijke Ahold and Seven I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Ahold and Seven I
The main advantage of trading using opposite Koninklijke Ahold and Seven I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Ahold position performs unexpectedly, Seven I 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 Seven I will offset losses from the drop in Seven I'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 |
| Seven I vs. TESCO PLC LS 0633333 | Seven I vs. Superior Plus Corp | Seven I vs. NMI Holdings | Seven I 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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