Correlation Between HAL Trust and Randstad

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

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

Diversification Opportunities for HAL Trust and Randstad

0.79

Correlation Coefficient

HAL Trust  Randstad

Poor diversification

The 3 months correlation between HAL and Randstad is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and Randstad NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Randstad 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 Randstad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Randstad NV has no effect on the direction of HAL Trust i.e., HAL Trust and Randstad go up and down completely randomly.

Pair Corralation between HAL Trust and Randstad

Assuming the 90 days trading horizon HAL Trust is expected to generate 1.5 times less return on investment than Randstad. But when comparing it to its historical volatility, HAL Trust is 1.96 times less risky than Randstad. It trades about 0.21 of its potential returns per unit of risk. Randstad NV is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,507  in Randstad NV on April 24, 2025 and sell it today you would earn a total of  585.00  from holding Randstad NV or generate 16.68% return on investment over 90 days.

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

HAL Trust  vs.  Randstad 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 16 (%) 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.

Randstad NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Randstad NV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Randstad unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HAL Trust and Randstad

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

The idea behind HAL Trust and Randstad 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.