Correlation Between Koninklijke BAM and CM NV

Can any of the company-specific risk be diversified away by investing in both Koninklijke BAM and CM 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 Koninklijke BAM and CM NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Koninklijke BAM and CM NV

0.55

Correlation Coefficient

Koninklijke BAM  CM NV

Very weak diversification

The 3 months correlation between Koninklijke and CMCOM is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke BAM Groep and CM NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM NV and Koninklijke BAM 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 Koninklijke BAM Groep are associated (or correlated) with CM NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM NV has no effect on the direction of Koninklijke BAM i.e., Koninklijke BAM and CM NV go up and down completely randomly.

Pair Corralation between Koninklijke BAM and CM NV

Assuming the 90 days trading horizon Koninklijke BAM Groep is expected to generate 0.52 times more return on investment than CM NV. However, Koninklijke BAM Groep is 1.91 times less risky than CM NV. It trades about 0.4 of its potential returns per unit of risk. CM NV is currently generating about 0.06 per unit of risk. If you would invest  495.00  in Koninklijke BAM Groep on April 22, 2025 and sell it today you would earn a total of  254.00  from holding Koninklijke BAM Groep or generate 51.31% return on investment over 90 days.

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

Koninklijke BAM Groep  vs.  CM NV

Koninklijke BAM Groep

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Koninklijke BAM Groep are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Koninklijke BAM sustained solid returns over the last few months and may actually be approaching a breakup point.

CM NV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CM NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, CM NV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Koninklijke BAM and CM NV

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

The idea behind Koninklijke BAM Groep and CM 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.