Correlation Between EAGLE MATERIALS and Koninklijke Ahold
Specify exactly 2 symbols:
By analyzing existing cross correlation between EAGLE MATERIALS and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on EAGLE MATERIALS and Koninklijke Ahold 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 EAGLE MATERIALS with a short position of Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and Koninklijke Ahold.
Diversification Opportunities for EAGLE MATERIALS and Koninklijke Ahold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EAGLE and Koninklijke is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold and EAGLE MATERIALS 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 EAGLE MATERIALS are associated (or correlated) with Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of EAGLE MATERIALS i.e., EAGLE MATERIALS and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and Koninklijke Ahold
Assuming the 90 days trading horizon EAGLE MATERIALS is expected to generate 1.18 times more return on investment than Koninklijke Ahold. However, EAGLE MATERIALS is 1.18 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.09 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.04 per unit of risk. If you would invest 12,377 in EAGLE MATERIALS on September 13, 2024 and sell it today you would earn a total of 14,023 from holding EAGLE MATERIALS or generate 113.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.4% |
| Values | Daily Returns |
EAGLE MATERIALS vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| EAGLE MATERIALS |
| Koninklijke Ahold |
EAGLE MATERIALS and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and Koninklijke Ahold
The main advantage of trading using opposite EAGLE MATERIALS and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc | EAGLE MATERIALS vs. Apple Inc |
| Koninklijke Ahold vs. EAGLE MATERIALS | Koninklijke Ahold vs. Rayonier Advanced Materials | Koninklijke Ahold vs. SANOK RUBBER ZY | Koninklijke Ahold vs. Sumitomo Rubber Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |