Correlation Between Unilever PLC and Aalberts Industries

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

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

Diversification Opportunities for Unilever PLC and Aalberts Industries

-0.47

Correlation Coefficient

Unilever PLC  Aalberts Industries

Very good diversification

The 3 months correlation between Unilever and Aalberts is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Unilever PLC and Aalberts Industries NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalberts Industries and Unilever PLC 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 Unilever PLC are associated (or correlated) with Aalberts Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalberts Industries has no effect on the direction of Unilever PLC i.e., Unilever PLC and Aalberts Industries go up and down completely randomly.

Pair Corralation between Unilever PLC and Aalberts Industries

Assuming the 90 days trading horizon Unilever PLC is expected to under-perform the Aalberts Industries. But the stock apears to be less risky and, when comparing its historical volatility, Unilever PLC is 2.03 times less risky than Aalberts Industries. The stock trades about -0.15 of its potential returns per unit of risk. The Aalberts Industries NV is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,802  in Aalberts Industries NV on April 24, 2025 and sell it today you would earn a total of  260.00  from holding Aalberts Industries NV or generate 9.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Unilever PLC  vs.  Aalberts Industries NV

Unilever PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unilever PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Aalberts Industries

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aalberts Industries NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Aalberts Industries may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Unilever PLC and Aalberts Industries

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

The idea behind Unilever PLC and Aalberts Industries 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.