Correlation Between IMCD NV and Aperam SA

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

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

Diversification Opportunities for IMCD NV and Aperam SA

-0.26

Correlation Coefficient

IMCD NV  Aperam SA

Very good diversification

The 3 months correlation between IMCD and Aperam is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding IMCD NV and Aperam SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperam SA and IMCD NV 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 IMCD NV are associated (or correlated) with Aperam SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperam SA has no effect on the direction of IMCD NV i.e., IMCD NV and Aperam SA go up and down completely randomly.

Pair Corralation between IMCD NV and Aperam SA

Assuming the 90 days trading horizon IMCD NV is expected to under-perform the Aperam SA. In addition to that, IMCD NV is 1.13 times more volatile than Aperam SA. It trades about -0.16 of its total potential returns per unit of risk. Aperam SA is currently generating about 0.03 per unit of volatility. If you would invest  2,534  in Aperam SA on May 3, 2025 and sell it today you would earn a total of  54.00  from holding Aperam SA or generate 2.13% return on investment over 90 days.

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

IMCD NV  vs.  Aperam SA

IMCD NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMCD NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Aperam SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aperam SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Aperam SA 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 IMCD NV and Aperam SA

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

The idea behind IMCD NV and Aperam SA 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.