Correlation Between IShares Core and Aalberts Industries

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

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

Diversification Opportunities for IShares Core and Aalberts Industries

0.51

Correlation Coefficient

IShares Core  Aalberts Industries

Very weak diversification

The 3 months correlation between IShares and Aalberts is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Aalberts Industries NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalberts Industries and IShares Core 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 iShares Core SP are associated (or correlated) with Aalberts Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalberts Industries has no effect on the direction of IShares Core i.e., IShares Core and Aalberts Industries go up and down completely randomly.

Pair Corralation between IShares Core and Aalberts Industries

Assuming the 90 days trading horizon iShares Core SP is expected to generate 0.35 times more return on investment than Aalberts Industries. However, iShares Core SP is 2.86 times less risky than Aalberts Industries. It trades about 0.19 of its potential returns per unit of risk. Aalberts Industries NV is currently generating about 0.0 per unit of risk. If you would invest  53,212  in iShares Core SP on May 1, 2025 and sell it today you would earn a total of  5,749  from holding iShares Core SP or generate 10.8% return on investment over 90 days.

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

iShares Core SP  vs.  Aalberts Industries NV

iShares Core SP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core SP are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, IShares Core may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Aalberts Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aalberts Industries NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Aalberts Industries is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with IShares Core and Aalberts Industries

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

The idea behind iShares Core SP and Aalberts Industries 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.