Correlation Between HAL Trust and IMCD NV

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

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

Diversification Opportunities for HAL Trust and IMCD NV

-0.42

Correlation Coefficient

HAL Trust  IMCD NV

Very good diversification

The 3 months correlation between HAL and IMCD is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and IMCD NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMCD 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 IMCD NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMCD NV has no effect on the direction of HAL Trust i.e., HAL Trust and IMCD NV go up and down completely randomly.

Pair Corralation between HAL Trust and IMCD NV

If you would invest  11,070  in HAL Trust on April 21, 2025 and sell it today you would earn a total of  1,390  from holding HAL Trust or generate 12.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

HAL Trust  vs.  IMCD 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 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.

IMCD NV

Risk-Adjusted Performance

Very Weak

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

Pair Trading with HAL Trust and IMCD NV

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

The idea behind HAL Trust and IMCD 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.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.