Correlation Between Van Lanschot and Amsterdam Commodities
Can any of the company-specific risk be diversified away by investing in both Van Lanschot and Amsterdam Commodities 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 Van Lanschot and Amsterdam Commodities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Van Lanschot NV and Amsterdam Commodities NV, you can compare the effects of market volatilities on Van Lanschot and Amsterdam Commodities 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 Van Lanschot with a short position of Amsterdam Commodities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Lanschot and Amsterdam Commodities.
Diversification Opportunities for Van Lanschot and Amsterdam Commodities
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Van and Amsterdam is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Van Lanschot NV and Amsterdam Commodities NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amsterdam Commodities and Van Lanschot 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 Van Lanschot NV are associated (or correlated) with Amsterdam Commodities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amsterdam Commodities has no effect on the direction of Van Lanschot i.e., Van Lanschot and Amsterdam Commodities go up and down completely randomly.
Pair Corralation between Van Lanschot and Amsterdam Commodities
Assuming the 90 days trading horizon Van Lanschot NV is expected to under-perform the Amsterdam Commodities. In addition to that, Van Lanschot is 1.54 times more volatile than Amsterdam Commodities NV. It trades about -0.12 of its total potential returns per unit of risk. Amsterdam Commodities NV is currently generating about -0.11 per unit of volatility. If you would invest 1,776 in Amsterdam Commodities NV on August 29, 2024 and sell it today you would lose (48.00) from holding Amsterdam Commodities NV or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Van Lanschot NV vs. Amsterdam Commodities NV
Performance |
| Timeline |
| Van Lanschot NV |
| Amsterdam Commodities |
Van Lanschot and Amsterdam Commodities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Van Lanschot and Amsterdam Commodities
The main advantage of trading using opposite Van Lanschot and Amsterdam Commodities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Van Lanschot position performs unexpectedly, Amsterdam Commodities 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 Amsterdam Commodities will offset losses from the drop in Amsterdam Commodities' long position.| Van Lanschot vs. ASR Nederland NV | Van Lanschot vs. NN Group NV | Van Lanschot vs. TKH Group NV | Van Lanschot vs. Koninklijke Heijmans NV |
| Amsterdam Commodities vs. Flow Traders BV | Amsterdam Commodities vs. Aalberts Industries NV | Amsterdam Commodities vs. ForFarmers NV | Amsterdam Commodities vs. TKH Group 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |