Correlation Between HAL Trust and AFC Ajax

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

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

Diversification Opportunities for HAL Trust and AFC Ajax

-0.76

Correlation Coefficient

HAL Trust  AFC Ajax

Pay attention - limited upside

The 3 months correlation between HAL and AFC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and AFC Ajax NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Ajax NV 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 AFC Ajax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Ajax NV has no effect on the direction of HAL Trust i.e., HAL Trust and AFC Ajax go up and down completely randomly.

Pair Corralation between HAL Trust and AFC Ajax

Assuming the 90 days trading horizon HAL Trust is expected to generate 1.77 times more return on investment than AFC Ajax. However, HAL Trust is 1.77 times more volatile than AFC Ajax NV. It trades about 0.22 of its potential returns per unit of risk. AFC Ajax NV is currently generating about -0.12 per unit of risk. If you would invest  11,207  in HAL Trust on April 24, 2025 and sell it today you would earn a total of  1,273  from holding HAL Trust or generate 11.36% return on investment over 90 days.

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

HAL Trust  vs.  AFC Ajax NV

HAL Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 17 (%) 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.

AFC Ajax NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days AFC Ajax NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AFC Ajax is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with HAL Trust and AFC Ajax

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

The idea behind HAL Trust and AFC Ajax 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.