Correlation Between Alfen Beheer and Just Eat
Can any of the company-specific risk be diversified away by investing in both Alfen Beheer and Just Eat 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 Just Eat 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 Just Eat Takeaway, you can compare the effects of market volatilities on Alfen Beheer and Just Eat 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 Just Eat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen Beheer and Just Eat.
Diversification Opportunities for Alfen Beheer and Just Eat
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alfen and Just is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Alfen Beheer BV and Just Eat Takeaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Eat Takeaway 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 Just Eat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Eat Takeaway has no effect on the direction of Alfen Beheer i.e., Alfen Beheer and Just Eat go up and down completely randomly.
Pair Corralation between Alfen Beheer and Just Eat
Assuming the 90 days trading horizon Alfen Beheer BV is expected to under-perform the Just Eat. In addition to that, Alfen Beheer is 1.34 times more volatile than Just Eat Takeaway. It trades about -0.04 of its total potential returns per unit of risk. Just Eat Takeaway is currently generating about 0.34 per unit of volatility. If you would invest 1,095 in Just Eat Takeaway on August 31, 2024 and sell it today you would earn a total of 383.00 from holding Just Eat Takeaway or generate 34.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfen Beheer BV vs. Just Eat Takeaway
Performance |
| Timeline |
| Alfen Beheer BV |
| Just Eat Takeaway |
Alfen Beheer and Just Eat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfen Beheer and Just Eat
The main advantage of trading using opposite Alfen Beheer and Just Eat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen Beheer position performs unexpectedly, Just Eat 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 Just Eat will offset losses from the drop in Just Eat'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 |
| Just Eat vs. Prosus NV | Just Eat vs. Koninklijke Ahold Delhaize | Just Eat vs. Adyen NV | Just Eat vs. ASML Holding 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 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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