Correlation Between Amsterdam Commodities and Koninklijke Ahold

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

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

Diversification Opportunities for Amsterdam Commodities and Koninklijke Ahold

0.15

Correlation Coefficient

Amsterdam Commodities  Koninklijke Ahold

Average diversification

The 3 months correlation between Amsterdam and Koninklijke is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amsterdam Commodities NV and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold and Amsterdam Commodities 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 Amsterdam Commodities NV are associated (or correlated) with Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of Amsterdam Commodities i.e., Amsterdam Commodities and Koninklijke Ahold go up and down completely randomly.

Pair Corralation between Amsterdam Commodities and Koninklijke Ahold

Assuming the 90 days trading horizon Amsterdam Commodities NV is expected to generate 1.5 times more return on investment than Koninklijke Ahold. However, Amsterdam Commodities is 1.5 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.02 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about -0.13 per unit of risk. If you would invest  2,186  in Amsterdam Commodities NV on May 7, 2025 and sell it today you would earn a total of  24.00  from holding Amsterdam Commodities NV or generate 1.1% return on investment over 90 days.

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

Amsterdam Commodities NV  vs.  Koninklijke Ahold Delhaize

Amsterdam Commodities

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amsterdam Commodities NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Amsterdam Commodities is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Koninklijke Ahold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koninklijke Ahold Delhaize 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.

Pair Trading with Amsterdam Commodities and Koninklijke Ahold

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

The idea behind Amsterdam Commodities NV and Koninklijke Ahold Delhaize 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.