Correlation Between Alfen Beheer and NSI NV

Can any of the company-specific risk be diversified away by investing in both Alfen Beheer and NSI 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 Alfen Beheer and NSI NV 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 NSI NV, you can compare the effects of market volatilities on Alfen Beheer and NSI 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 Alfen Beheer with a short position of NSI NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen Beheer and NSI NV.

Diversification Opportunities for Alfen Beheer and NSI NV

-0.71

Correlation Coefficient

Alfen Beheer  NSI NV

Pay attention - limited upside

The 3 months correlation between Alfen and NSI is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Alfen Beheer BV and NSI NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSI NV 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 NSI NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSI NV has no effect on the direction of Alfen Beheer i.e., Alfen Beheer and NSI NV go up and down completely randomly.

Pair Corralation between Alfen Beheer and NSI NV

Assuming the 90 days trading horizon Alfen Beheer BV is expected to under-perform the NSI NV. In addition to that, Alfen Beheer is 3.51 times more volatile than NSI NV. It trades about -0.07 of its total potential returns per unit of risk. NSI NV is currently generating about 0.09 per unit of volatility. If you would invest  2,018  in NSI NV on April 24, 2025 and sell it today you would earn a total of  142.00  from holding NSI NV or generate 7.04% return on investment over 90 days.

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

Alfen Beheer BV  vs.  NSI NV

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 uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

NSI NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NSI NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, NSI NV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Alfen Beheer and NSI NV

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

The idea behind Alfen Beheer BV and NSI 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.