Correlation Between Optimix Wereld and Add Value

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

By analyzing existing cross correlation between Optimix Wereld Aandelen and Add Value Fund, you can compare the effects of market volatilities on Optimix Wereld and Add Value 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 Optimix Wereld with a short position of Add Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimix Wereld and Add Value.

Diversification Opportunities for Optimix Wereld and Add Value

0.76

Correlation Coefficient

Optimix Wereld  Add Value

Poor diversification

The 3 months correlation between Optimix and Add is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Optimix Wereld Aandelen and Add Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Add Value Fund and Optimix Wereld 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 Optimix Wereld Aandelen are associated (or correlated) with Add Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Add Value Fund has no effect on the direction of Optimix Wereld i.e., Optimix Wereld and Add Value go up and down completely randomly.

Pair Corralation between Optimix Wereld and Add Value

Assuming the 90 days trading horizon Optimix Wereld Aandelen is expected to generate 0.53 times more return on investment than Add Value. However, Optimix Wereld Aandelen is 1.88 times less risky than Add Value. It trades about 0.25 of its potential returns per unit of risk. Add Value Fund is currently generating about 0.09 per unit of risk. If you would invest  6,000  in Optimix Wereld Aandelen on May 6, 2025 and sell it today you would earn a total of  611.00  from holding Optimix Wereld Aandelen or generate 10.18% return on investment over 90 days.

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

Optimix Wereld Aandelen  vs.  Add Value Fund

Optimix Wereld Aandelen

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Optimix Wereld Aandelen are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating basic indicators, Optimix Wereld may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Add Value Fund

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Add Value Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat uncertain basic indicators, Add Value may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Optimix Wereld and Add Value

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

The idea behind Optimix Wereld Aandelen and Add Value Fund 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.