Correlation Between HAL Trust and Avantium Holding

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

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

Diversification Opportunities for HAL Trust and Avantium Holding

0.83

Correlation Coefficient

HAL Trust  Avantium Holding

Very poor diversification

The 3 months correlation between HAL and Avantium is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and Avantium Holding BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantium Holding 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 Avantium Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantium Holding has no effect on the direction of HAL Trust i.e., HAL Trust and Avantium Holding go up and down completely randomly.

Pair Corralation between HAL Trust and Avantium Holding

Assuming the 90 days trading horizon HAL Trust is expected to generate 4.08 times less return on investment than Avantium Holding. But when comparing it to its historical volatility, HAL Trust is 5.61 times less risky than Avantium Holding. It trades about 0.28 of its potential returns per unit of risk. Avantium Holding BV is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,302  in Avantium Holding BV on April 23, 2025 and sell it today you would earn a total of  198.00  from holding Avantium Holding BV or generate 15.21% return on investment over 90 days.

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

HAL Trust  vs.  Avantium Holding BV

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.

Avantium Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Avantium Holding BV are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Avantium Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HAL Trust and Avantium Holding

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

The idea behind HAL Trust and Avantium Holding BV 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.