Correlation Between Armada Mercantile and Aalberts

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

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

Diversification Opportunities for Armada Mercantile and Aalberts

0.59

Correlation Coefficient

Armada Mercantile  Aalberts

Very weak diversification

The 3 months correlation between Armada and Aalberts is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Armada Mercantile and Aalberts NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalberts NV and Armada Mercantile 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 Armada Mercantile are associated (or correlated) with Aalberts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalberts NV has no effect on the direction of Armada Mercantile i.e., Armada Mercantile and Aalberts go up and down completely randomly.

Pair Corralation between Armada Mercantile and Aalberts

Assuming the 90 days horizon Armada Mercantile is expected to under-perform the Aalberts. In addition to that, Armada Mercantile is 2.81 times more volatile than Aalberts NV. It trades about -0.06 of its total potential returns per unit of risk. Aalberts NV is currently generating about -0.09 per unit of volatility. If you would invest  3,687  in Aalberts NV on July 19, 2025 and sell it today you would lose (483.00) from holding Aalberts NV or give up 13.1% of portfolio value over 90 days.

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

Armada Mercantile  vs.  Aalberts NV

Armada Mercantile

Risk-Adjusted Performance

Weakest

Over the last 90 days Armada Mercantile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Aalberts NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Aalberts NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Armada Mercantile and Aalberts

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

The idea behind Armada Mercantile and Aalberts 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.