Correlation Between Optimix Wereld and Kempen Global

Can any of the company-specific risk be diversified away by investing in both Optimix Wereld and Kempen Global 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 Kempen Global 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 Kempen Global High, you can compare the effects of market volatilities on Optimix Wereld and Kempen Global 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 Kempen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimix Wereld and Kempen Global.

Diversification Opportunities for Optimix Wereld and Kempen Global

0.9

Correlation Coefficient

Optimix Wereld  Kempen Global

Almost no diversification

The 3 months correlation between Optimix and Kempen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Optimix Wereld Aandelen and Kempen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempen Global High 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 Kempen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempen Global High has no effect on the direction of Optimix Wereld i.e., Optimix Wereld and Kempen Global go up and down completely randomly.

Pair Corralation between Optimix Wereld and Kempen Global

Assuming the 90 days trading horizon Optimix Wereld Aandelen is expected to generate 0.94 times more return on investment than Kempen Global. However, Optimix Wereld Aandelen is 1.07 times less risky than Kempen Global. It trades about 0.17 of its potential returns per unit of risk. Kempen Global High is currently generating about 0.1 per unit of risk. If you would invest  6,231  in Optimix Wereld Aandelen on May 16, 2025 and sell it today you would earn a total of  412.00  from holding Optimix Wereld Aandelen or generate 6.61% return on investment over 90 days.

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

Optimix Wereld Aandelen  vs.  Kempen Global High

Optimix Wereld Aandelen

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Optimix Wereld Aandelen are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, Optimix Wereld may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kempen Global High

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Kempen Global High are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Kempen Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Optimix Wereld and Kempen Global

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

The idea behind Optimix Wereld Aandelen and Kempen Global High 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.