Correlation Between Alfen Beheer and ASR Nederland
Can any of the company-specific risk be diversified away by investing in both Alfen Beheer and ASR Nederland 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 Alfen Beheer and ASR Nederland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfen Beheer BV and ASR Nederland NV, you can compare the effects of market volatilities on Alfen Beheer and ASR Nederland 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 Alfen Beheer with a short position of ASR Nederland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen Beheer and ASR Nederland.
Diversification Opportunities for Alfen Beheer and ASR Nederland
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alfen and ASR is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Alfen Beheer BV and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV and Alfen Beheer 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 Alfen Beheer BV are associated (or correlated) with ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of Alfen Beheer i.e., Alfen Beheer and ASR Nederland go up and down completely randomly.
Pair Corralation between Alfen Beheer and ASR Nederland
Assuming the 90 days trading horizon Alfen Beheer BV is expected to under-perform the ASR Nederland. In addition to that, Alfen Beheer is 3.65 times more volatile than ASR Nederland NV. It trades about -0.04 of its total potential returns per unit of risk. ASR Nederland NV is currently generating about 0.05 per unit of volatility. If you would invest 4,394 in ASR Nederland NV on August 31, 2024 and sell it today you would earn a total of 67.00 from holding ASR Nederland NV or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfen Beheer BV vs. ASR Nederland NV
Performance |
| Timeline |
| Alfen Beheer BV |
| ASR Nederland NV |
Alfen Beheer and ASR Nederland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfen Beheer and ASR Nederland
The main advantage of trading using opposite Alfen Beheer and ASR Nederland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen Beheer position performs unexpectedly, ASR Nederland 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 ASR Nederland will offset losses from the drop in ASR Nederland's long position.| Alfen Beheer vs. Fastned BV | Alfen Beheer vs. Basic Fit NV | Alfen Beheer vs. BE Semiconductor Industries | Alfen Beheer vs. ASM International NV |
| ASR Nederland vs. NN Group NV | ASR Nederland vs. Koninklijke Ahold Delhaize | ASR Nederland vs. BE Semiconductor Industries | ASR Nederland vs. Aegon NV |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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