Correlation Between Alfen NV and Tantalus Systems

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

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

Diversification Opportunities for Alfen NV and Tantalus Systems

0.0

Correlation Coefficient

Alfen NV  Tantalus Systems

Pay attention - limited upside

The 3 months correlation between Alfen and Tantalus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alfen NV and Tantalus Systems Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tantalus Systems Holding and Alfen 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 Alfen NV are associated (or correlated) with Tantalus Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tantalus Systems Holding has no effect on the direction of Alfen NV i.e., Alfen NV and Tantalus Systems go up and down completely randomly.

Pair Corralation between Alfen NV and Tantalus Systems

If you would invest  137.00  in Tantalus Systems Holding on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Tantalus Systems Holding or generate 1.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Alfen NV  vs.  Tantalus Systems Holding

Alfen NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alfen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Alfen NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tantalus Systems Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tantalus Systems Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Tantalus Systems is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Alfen NV and Tantalus Systems

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

The idea behind Alfen NV and Tantalus Systems Holding 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.