Correlation Between Amsterdam Commodities and Corbion NV

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Can any of the company-specific risk be diversified away by investing in both Amsterdam Commodities and Corbion NV 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 Corbion NV 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 Corbion NV, you can compare the effects of market volatilities on Amsterdam Commodities and Corbion NV 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 Corbion NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amsterdam Commodities and Corbion NV.

Diversification Opportunities for Amsterdam Commodities and Corbion NV

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Amsterdam and Corbion is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amsterdam Commodities NV and Corbion NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corbion 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 Corbion NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corbion NV has no effect on the direction of Amsterdam Commodities i.e., Amsterdam Commodities and Corbion NV go up and down completely randomly.

Pair Corralation between Amsterdam Commodities and Corbion NV

Assuming the 90 days trading horizon Amsterdam Commodities NV is expected to generate 1.11 times more return on investment than Corbion NV. However, Amsterdam Commodities is 1.11 times more volatile than Corbion NV. It trades about 0.07 of its potential returns per unit of risk. Corbion NV is currently generating about 0.04 per unit of risk. If you would invest  2,059  in Amsterdam Commodities NV on April 24, 2025 and sell it today you would earn a total of  126.00  from holding Amsterdam Commodities NV or generate 6.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amsterdam Commodities NV  vs.  Corbion NV

 Performance 
       Timeline  
Amsterdam Commodities 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
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.
Corbion NV 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Corbion NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Corbion NV is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Amsterdam Commodities and Corbion NV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amsterdam Commodities and Corbion NV

The main advantage of trading using opposite Amsterdam Commodities and Corbion NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amsterdam Commodities position performs unexpectedly, Corbion NV 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 Corbion NV will offset losses from the drop in Corbion NV's long position.
The idea behind Amsterdam Commodities NV and Corbion 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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