Correlation Between Tokentus Investment and ABN AMRO

Can any of the company-specific risk be diversified away by investing in both Tokentus Investment and ABN AMRO 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 Tokentus Investment and ABN AMRO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between tokentus investment AG and ABN AMRO Bank, you can compare the effects of market volatilities on Tokentus Investment and ABN AMRO 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 Tokentus Investment with a short position of ABN AMRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokentus Investment and ABN AMRO.

Diversification Opportunities for Tokentus Investment and ABN AMRO

0.7

Correlation Coefficient

Tokentus Investment  ABN AMRO

Poor diversification

The 3 months correlation between Tokentus and ABN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding tokentus investment AG and ABN AMRO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABN AMRO Bank and Tokentus Investment 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 tokentus investment AG are associated (or correlated) with ABN AMRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABN AMRO Bank has no effect on the direction of Tokentus Investment i.e., Tokentus Investment and ABN AMRO go up and down completely randomly.

Pair Corralation between Tokentus Investment and ABN AMRO

Assuming the 90 days horizon Tokentus Investment is expected to generate 1.35 times less return on investment than ABN AMRO. In addition to that, Tokentus Investment is 2.59 times more volatile than ABN AMRO Bank. It trades about 0.1 of its total potential returns per unit of risk. ABN AMRO Bank is currently generating about 0.36 per unit of volatility. If you would invest  1,728  in ABN AMRO Bank on April 20, 2025 and sell it today you would earn a total of  684.00  from holding ABN AMRO Bank or generate 39.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

tokentus investment AG  vs.  ABN AMRO Bank

tokentus investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in tokentus investment AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Tokentus Investment reported solid returns over the last few months and may actually be approaching a breakup point.

ABN AMRO Bank

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in ABN AMRO Bank are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, ABN AMRO unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tokentus Investment and ABN AMRO

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

The idea behind tokentus investment AG and ABN AMRO Bank 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.