Correlation Between Robeco Sust and Kempen Global

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

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

Diversification Opportunities for Robeco Sust and Kempen Global

0.92

Correlation Coefficient

Robeco Sust  Kempen Global

Almost no diversification

The 3 months correlation between Robeco and Kempen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Robeco Sust Global and Kempen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempen Global High and Robeco Sust 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 Robeco Sust Global are associated (or correlated) with Kempen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempen Global High has no effect on the direction of Robeco Sust i.e., Robeco Sust and Kempen Global go up and down completely randomly.

Pair Corralation between Robeco Sust and Kempen Global

Assuming the 90 days trading horizon Robeco Sust Global is expected to generate 1.15 times more return on investment than Kempen Global. However, Robeco Sust is 1.15 times more volatile than Kempen Global High. It trades about 0.25 of its potential returns per unit of risk. Kempen Global High is currently generating about 0.26 per unit of risk. If you would invest  6,804  in Robeco Sust Global on April 22, 2025 and sell it today you would earn a total of  890.00  from holding Robeco Sust Global or generate 13.08% return on investment over 90 days.

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

Robeco Sust Global  vs.  Kempen Global High

Robeco Sust Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Robeco Sust Global are ranked lower than 19 (%) 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.

Kempen Global High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kempen Global High are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat uncertain basic indicators, Kempen Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Robeco Sust and Kempen Global

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

The idea behind Robeco Sust Global and Kempen Global High 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..