Correlation Between Alfen Beheer and ABN Amro

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

By analyzing existing cross correlation between Alfen Beheer BV and ABN Amro Group, you can compare the effects of market volatilities on Alfen Beheer 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 Alfen Beheer with a short position of ABN Amro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen Beheer and ABN Amro.

Diversification Opportunities for Alfen Beheer and ABN Amro

0.0

Correlation Coefficient

Alfen Beheer  ABN Amro

Pay attention - limited upside

The 3 months correlation between Alfen and ABN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alfen Beheer BV and ABN Amro Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABN Amro Group and Alfen Beheer 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 Alfen Beheer BV 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 Group has no effect on the direction of Alfen Beheer i.e., Alfen Beheer and ABN Amro go up and down completely randomly.

Pair Corralation between Alfen Beheer and ABN Amro

If you would invest  1,731  in ABN Amro Group on April 22, 2025 and sell it today you would earn a total of  686.00  from holding ABN Amro Group or generate 39.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Alfen Beheer BV  vs.  ABN Amro Group

Alfen Beheer BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alfen Beheer BV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alfen Beheer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ABN Amro Group

Risk-Adjusted Performance

Strong

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

Pair Trading with Alfen Beheer and ABN Amro

The main advantage of trading using opposite Alfen Beheer and ABN Amro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen Beheer 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 Alfen Beheer BV and ABN Amro Group 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.