Correlation Between Koninklijke Ahold and ASR Nederland
Can any of the company-specific risk be diversified away by investing in both Koninklijke Ahold and ASR Nederland 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 Koninklijke Ahold and ASR Nederland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke Ahold Delhaize and ASR Nederland NV, you can compare the effects of market volatilities on Koninklijke Ahold and ASR Nederland 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 Koninklijke Ahold with a short position of ASR Nederland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Ahold and ASR Nederland.
Diversification Opportunities for Koninklijke Ahold and ASR Nederland
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koninklijke and ASR is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Ahold Delhaize and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV and Koninklijke Ahold 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 Koninklijke Ahold Delhaize are associated (or correlated) with ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of Koninklijke Ahold i.e., Koninklijke Ahold and ASR Nederland go up and down completely randomly.
Pair Corralation between Koninklijke Ahold and ASR Nederland
Assuming the 90 days horizon Koninklijke Ahold Delhaize is expected to generate 0.83 times more return on investment than ASR Nederland. However, Koninklijke Ahold Delhaize is 1.21 times less risky than ASR Nederland. It trades about 0.13 of its potential returns per unit of risk. ASR Nederland NV is currently generating about 0.0 per unit of risk. If you would invest 3,454 in Koninklijke Ahold Delhaize on July 20, 2025 and sell it today you would earn a total of 242.00 from holding Koninklijke Ahold Delhaize or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koninklijke Ahold Delhaize vs. ASR Nederland NV
Performance |
| Timeline |
| Koninklijke Ahold |
| ASR Nederland NV |
Koninklijke Ahold and ASR Nederland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Ahold and ASR Nederland
The main advantage of trading using opposite Koninklijke Ahold and ASR Nederland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Ahold position performs unexpectedly, ASR Nederland 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 ASR Nederland will offset losses from the drop in ASR Nederland's long position.| Koninklijke Ahold vs. Coca Cola Europacific Partners | Koninklijke Ahold vs. Heineken | Koninklijke Ahold vs. Heineken Holding NV | Koninklijke Ahold vs. DSM Firmenich AG |
| ASR Nederland vs. Aegon NV | ASR Nederland vs. NN Group NV | ASR Nederland vs. CVC Capital Partners | ASR Nederland vs. ABN Amro Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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