Correlation Between Randstad and Heineken

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

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

Diversification Opportunities for Randstad and Heineken

-0.31

Correlation Coefficient

Randstad  Heineken

Very good diversification

The 3 months correlation between Randstad and Heineken is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Randstad NV and Heineken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken and Randstad 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 Randstad NV are associated (or correlated) with Heineken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken has no effect on the direction of Randstad i.e., Randstad and Heineken go up and down completely randomly.

Pair Corralation between Randstad and Heineken

Assuming the 90 days trading horizon Randstad NV is expected to generate 1.31 times more return on investment than Heineken. However, Randstad is 1.31 times more volatile than Heineken. It trades about 0.18 of its potential returns per unit of risk. Heineken is currently generating about -0.01 per unit of risk. If you would invest  3,575  in Randstad NV on April 23, 2025 and sell it today you would earn a total of  641.00  from holding Randstad NV or generate 17.93% return on investment over 90 days.

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

Randstad NV  vs.  Heineken

Randstad NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Randstad NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Randstad unveiled solid returns over the last few months and may actually be approaching a breakup point.

Heineken

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Randstad and Heineken

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

The idea behind Randstad NV and Heineken 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.