Correlation Between HAL Trust and Robeco Sust

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

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

Diversification Opportunities for HAL Trust and Robeco Sust

0.74

Correlation Coefficient

HAL Trust  Robeco Sust

Poor diversification

The 3 months correlation between HAL and Robeco is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and Robeco Sust Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robeco Sust Global 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 Robeco Sust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robeco Sust Global has no effect on the direction of HAL Trust i.e., HAL Trust and Robeco Sust go up and down completely randomly.

Pair Corralation between HAL Trust and Robeco Sust

Assuming the 90 days trading horizon HAL Trust is expected to generate 1.1 times more return on investment than Robeco Sust. However, HAL Trust is 1.1 times more volatile than Robeco Sust Global. It trades about 0.21 of its potential returns per unit of risk. Robeco Sust Global is currently generating about 0.16 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  1,253  from holding HAL Trust or generate 11.18% 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.  Robeco Sust Global

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.

Robeco Sust Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robeco Sust Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Robeco Sust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with HAL Trust and Robeco Sust

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

The idea behind HAL Trust and Robeco Sust Global 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.