Correlation Between Koninklijke BAM and PostNL NV
Can any of the company-specific risk be diversified away by investing in both Koninklijke BAM and PostNL NV 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 BAM and PostNL NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke BAM Groep and PostNL NV, you can compare the effects of market volatilities on Koninklijke BAM and PostNL NV 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 BAM with a short position of PostNL NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke BAM and PostNL NV.
Diversification Opportunities for Koninklijke BAM and PostNL NV
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koninklijke and PostNL is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke BAM Groep and PostNL NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostNL NV and Koninklijke BAM 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 BAM Groep are associated (or correlated) with PostNL NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostNL NV has no effect on the direction of Koninklijke BAM i.e., Koninklijke BAM and PostNL NV go up and down completely randomly.
Pair Corralation between Koninklijke BAM and PostNL NV
Assuming the 90 days trading horizon Koninklijke BAM Groep is expected to generate 0.94 times more return on investment than PostNL NV. However, Koninklijke BAM Groep is 1.07 times less risky than PostNL NV. It trades about 0.08 of its potential returns per unit of risk. PostNL NV is currently generating about -0.03 per unit of risk. If you would invest 198.00 in Koninklijke BAM Groep on August 24, 2024 and sell it today you would earn a total of 203.00 from holding Koninklijke BAM Groep or generate 102.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koninklijke BAM Groep vs. PostNL NV
Performance |
| Timeline |
| Koninklijke BAM Groep |
| PostNL NV |
Koninklijke BAM and PostNL NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke BAM and PostNL NV
The main advantage of trading using opposite Koninklijke BAM and PostNL NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke BAM position performs unexpectedly, PostNL NV 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 PostNL NV will offset losses from the drop in PostNL NV's long position.| Koninklijke BAM vs. Fugro NV | Koninklijke BAM vs. SBM Offshore NV | Koninklijke BAM vs. Aegon NV | Koninklijke BAM vs. PostNL NV |
| PostNL NV vs. Koninklijke Ahold Delhaize | PostNL NV vs. Bpost NV | PostNL NV vs. Aegon NV | PostNL NV vs. Koninklijke KPN 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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