Correlation Between Elia Group and Ackermans Van

Can any of the company-specific risk be diversified away by investing in both Elia Group and Ackermans Van 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 Elia Group and Ackermans Van into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elia Group SANV and Ackermans Van Haaren, you can compare the effects of market volatilities on Elia Group and Ackermans Van 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 Elia Group with a short position of Ackermans Van. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elia Group and Ackermans Van.

Diversification Opportunities for Elia Group and Ackermans Van

0.05

Correlation Coefficient

Elia Group  Ackermans Van

Significant diversification

The 3 months correlation between Elia and Ackermans is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Elia Group SANV and Ackermans Van Haaren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackermans Van Haaren and Elia Group 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 Elia Group SANV are associated (or correlated) with Ackermans Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackermans Van Haaren has no effect on the direction of Elia Group i.e., Elia Group and Ackermans Van go up and down completely randomly.

Pair Corralation between Elia Group and Ackermans Van

Assuming the 90 days trading horizon Elia Group SANV is expected to generate 1.22 times more return on investment than Ackermans Van. However, Elia Group is 1.22 times more volatile than Ackermans Van Haaren. It trades about 0.06 of its potential returns per unit of risk. Ackermans Van Haaren is currently generating about 0.02 per unit of risk. If you would invest  8,815  in Elia Group SANV on September 4, 2024 and sell it today you would earn a total of  185.00  from holding Elia Group SANV or generate 2.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Elia Group SANV  vs.  Ackermans Van Haaren

Elia Group SANV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elia Group SANV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's forward indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Ackermans Van Haaren

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ackermans Van Haaren are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Ackermans Van is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Elia Group and Ackermans Van

The main advantage of trading using opposite Elia Group and Ackermans Van positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elia Group position performs unexpectedly, Ackermans Van 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 Ackermans Van will offset losses from the drop in Ackermans Van's long position.

The idea behind Elia Group SANV and Ackermans Van Haaren pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.