Correlation Between Koninklijke Ahold and ASR Nederland

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Koninklijke Ahold Delhaize  vs.  ASR Nederland NV

 Performance 
       Timeline  
Koninklijke Ahold 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Koninklijke Ahold Delhaize are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Koninklijke Ahold may actually be approaching a critical reversion point that can send shares even higher in November 2025.
ASR Nederland NV 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ASR Nederland NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ASR Nederland is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Koninklijke Ahold Delhaize and ASR Nederland 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 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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