Correlation Between PostNL NV and Koninklijke BAM
Can any of the company-specific risk be diversified away by investing in both PostNL NV and Koninklijke BAM 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 PostNL NV and Koninklijke BAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PostNL NV and Koninklijke BAM Groep, you can compare the effects of market volatilities on PostNL NV and Koninklijke BAM 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 PostNL NV with a short position of Koninklijke BAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of PostNL NV and Koninklijke BAM.
Diversification Opportunities for PostNL NV and Koninklijke BAM
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between PostNL and Koninklijke is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PostNL NV and Koninklijke BAM Groep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke BAM Groep and PostNL NV 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 PostNL NV are associated (or correlated) with Koninklijke BAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke BAM Groep has no effect on the direction of PostNL NV i.e., PostNL NV and Koninklijke BAM go up and down completely randomly.
Pair Corralation between PostNL NV and Koninklijke BAM
Assuming the 90 days trading horizon PostNL NV is expected to generate 4.39 times less return on investment than Koninklijke BAM. But when comparing it to its historical volatility, PostNL NV is 1.58 times less risky than Koninklijke BAM. It trades about 0.01 of its potential returns per unit of risk. Koninklijke BAM Groep is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Koninklijke BAM Groep on January 26, 2025 and sell it today you would earn a total of 3.00 from holding Koninklijke BAM Groep or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PostNL NV vs. Koninklijke BAM Groep
Performance |
| Timeline |
| PostNL NV |
| Koninklijke BAM Groep |
PostNL NV and Koninklijke BAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PostNL NV and Koninklijke BAM
The main advantage of trading using opposite PostNL NV and Koninklijke BAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PostNL NV position performs unexpectedly, Koninklijke BAM 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 BAM will offset losses from the drop in Koninklijke BAM's long position.| PostNL NV vs. Koninklijke Ahold Delhaize | PostNL NV vs. Bpost NV | PostNL NV vs. Aegon NV | PostNL NV vs. Koninklijke KPN NV |
| Koninklijke BAM vs. Fugro NV | Koninklijke BAM vs. SBM Offshore NV | Koninklijke BAM vs. Aegon NV | Koninklijke BAM vs. PostNL 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |