Correlation Between Azerion Group and ABN Amro

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

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

Diversification Opportunities for Azerion Group and ABN Amro

-0.66

Correlation Coefficient

Azerion Group  ABN Amro

Excellent diversification

The 3 months correlation between Azerion and ABN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Azerion Group NV 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 Azerion Group 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 Azerion Group NV 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 Azerion Group i.e., Azerion Group and ABN Amro go up and down completely randomly.

Pair Corralation between Azerion Group and ABN Amro

Assuming the 90 days trading horizon Azerion Group NV is expected to under-perform the ABN Amro. In addition to that, Azerion Group is 1.45 times more volatile than ABN Amro Group. It trades about -0.14 of its total potential returns per unit of risk. ABN Amro Group is currently generating about 0.36 per unit of volatility. If you would invest  1,759  in ABN Amro Group on April 24, 2025 and sell it today you would earn a total of  658.00  from holding ABN Amro Group or generate 37.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Azerion Group NV  vs.  ABN Amro Group

Azerion Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azerion Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 uncertain basic indicators, ABN Amro unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Azerion Group and ABN Amro

The main advantage of trading using opposite Azerion Group and ABN Amro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azerion Group 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 Azerion Group NV 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.