Correlation Between Brouwerij Handelsmaatschap and Whitestone

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

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

Diversification Opportunities for Brouwerij Handelsmaatschap and Whitestone

-0.39

Correlation Coefficient

Brouwerij Handelsmaatschap  Whitestone

Very good diversification

The 3 months correlation between Brouwerij and Whitestone is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Brouwerij Handelsmaatschappij and Whitestone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitestone Group and Brouwerij Handelsmaatschap 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 Brouwerij Handelsmaatschappij NV are associated (or correlated) with Whitestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitestone Group has no effect on the direction of Brouwerij Handelsmaatschap i.e., Brouwerij Handelsmaatschap and Whitestone go up and down completely randomly.

Pair Corralation between Brouwerij Handelsmaatschap and Whitestone

Assuming the 90 days trading horizon Brouwerij Handelsmaatschappij NV is expected to generate 3.07 times more return on investment than Whitestone. However, Brouwerij Handelsmaatschap is 3.07 times more volatile than Whitestone Group. It trades about 0.04 of its potential returns per unit of risk. Whitestone Group is currently generating about 0.0 per unit of risk. If you would invest  150,000  in Brouwerij Handelsmaatschappij NV on October 9, 2024 and sell it today you would earn a total of  2,000  from holding Brouwerij Handelsmaatschappij NV or generate 1.33% return on investment over 90 days.

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

Brouwerij Handelsmaatschappij   vs.  Whitestone Group

Brouwerij Handelsmaatschap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brouwerij Handelsmaatschappij NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Brouwerij Handelsmaatschap is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Whitestone Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Whitestone Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Whitestone may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Brouwerij Handelsmaatschap and Whitestone

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

The idea behind Brouwerij Handelsmaatschappij NV and Whitestone Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..