Correlation Between Avantium Holding and Brunel International

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

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

Diversification Opportunities for Avantium Holding and Brunel International

0.49

Correlation Coefficient

Avantium Holding  Brunel International

Very weak diversification

The 3 months correlation between Avantium and Brunel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Avantium Holding BV and Brunel International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunel International and Avantium Holding 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 Avantium Holding BV are associated (or correlated) with Brunel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunel International has no effect on the direction of Avantium Holding i.e., Avantium Holding and Brunel International go up and down completely randomly.

Pair Corralation between Avantium Holding and Brunel International

Assuming the 90 days trading horizon Avantium Holding BV is expected to generate 3.05 times more return on investment than Brunel International. However, Avantium Holding is 3.05 times more volatile than Brunel International NV. It trades about 0.13 of its potential returns per unit of risk. Brunel International NV is currently generating about -0.05 per unit of risk. If you would invest  937.00  in Avantium Holding BV on May 7, 2025 and sell it today you would earn a total of  495.00  from holding Avantium Holding BV or generate 52.83% return on investment over 90 days.

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

Avantium Holding BV  vs.  Brunel International NV

Avantium Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Avantium Holding BV are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Avantium Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Brunel International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brunel International NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak 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 Avantium Holding and Brunel International

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

The idea behind Avantium Holding BV and Brunel International 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.