Correlation Between Amsterdam Commodities and ASR Nederland

Can any of the company-specific risk be diversified away by investing in both Amsterdam Commodities and ASR Nederland 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 Amsterdam Commodities and ASR Nederland into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amsterdam Commodities NV and ASR Nederland NV, you can compare the effects of market volatilities on Amsterdam Commodities and ASR Nederland 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 Amsterdam Commodities with a short position of ASR Nederland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amsterdam Commodities and ASR Nederland.

Diversification Opportunities for Amsterdam Commodities and ASR Nederland

0.22

Correlation Coefficient

Amsterdam Commodities  ASR Nederland

Modest diversification

The 3 months correlation between Amsterdam and ASR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amsterdam Commodities NV and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV and Amsterdam Commodities 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 Amsterdam Commodities NV are associated (or correlated) with ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of Amsterdam Commodities i.e., Amsterdam Commodities and ASR Nederland go up and down completely randomly.

Pair Corralation between Amsterdam Commodities and ASR Nederland

Assuming the 90 days trading horizon Amsterdam Commodities is expected to generate 1.6 times less return on investment than ASR Nederland. In addition to that, Amsterdam Commodities is 2.07 times more volatile than ASR Nederland NV. It trades about 0.07 of its total potential returns per unit of risk. ASR Nederland NV is currently generating about 0.25 per unit of volatility. If you would invest  5,197  in ASR Nederland NV on April 24, 2025 and sell it today you would earn a total of  563.00  from holding ASR Nederland NV or generate 10.83% return on investment over 90 days.

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

Amsterdam Commodities NV  vs.  ASR Nederland NV

Amsterdam Commodities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amsterdam Commodities NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Amsterdam Commodities may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ASR Nederland NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ASR Nederland NV are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, ASR Nederland may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Amsterdam Commodities and ASR Nederland

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

The idea behind Amsterdam Commodities NV and ASR Nederland NV 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.