Correlation Between HAL Trust and ABN Amro

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

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

Diversification Opportunities for HAL Trust and ABN Amro

0.95

Correlation Coefficient

HAL Trust  ABN Amro

Almost no diversification

The 3 months correlation between HAL and ABN is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust 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 HAL Trust 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 HAL Trust 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 HAL Trust i.e., HAL Trust and ABN Amro go up and down completely randomly.

Pair Corralation between HAL Trust and ABN Amro

Assuming the 90 days trading horizon HAL Trust is expected to generate 2.97 times less return on investment than ABN Amro. But when comparing it to its historical volatility, HAL Trust is 1.85 times less risky than ABN Amro. It trades about 0.23 of its potential returns per unit of risk. ABN Amro Group is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  1,731  in ABN Amro Group on April 20, 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	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

HAL Trust  vs.  ABN Amro Group

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.

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 29 (%) 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 HAL Trust and ABN Amro

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

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.