Correlation Between ASR Nederland and HAL Trust

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

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

Diversification Opportunities for ASR Nederland and HAL Trust

0.81

Correlation Coefficient

ASR Nederland  HAL Trust

Very poor diversification

The 3 months correlation between ASR and HAL is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ASR Nederland NV and HAL Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAL Trust and ASR Nederland 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 ASR Nederland NV are associated (or correlated) with HAL Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAL Trust has no effect on the direction of ASR Nederland i.e., ASR Nederland and HAL Trust go up and down completely randomly.

Pair Corralation between ASR Nederland and HAL Trust

Assuming the 90 days trading horizon ASR Nederland is expected to generate 1.03 times less return on investment than HAL Trust. But when comparing it to its historical volatility, ASR Nederland NV is 1.19 times less risky than HAL Trust. It trades about 0.27 of its potential returns per unit of risk. HAL Trust is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  11,109  in HAL Trust on April 22, 2025 and sell it today you would earn a total of  1,351  from holding HAL Trust or generate 12.16% return on investment over 90 days.

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

ASR Nederland NV  vs.  HAL Trust

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 20 (%) 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.

HAL Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, HAL Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ASR Nederland and HAL Trust

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

The idea behind ASR Nederland NV and HAL Trust 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..