Correlation Between Aegon Funding and F PD
Can any of the company-specific risk be diversified away by investing in both Aegon Funding and F PD 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 Aegon Funding and F PD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon Funding and F PD, you can compare the effects of market volatilities on Aegon Funding and F PD 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 Aegon Funding with a short position of F PD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon Funding and F PD.
Diversification Opportunities for Aegon Funding and F PD
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegon and F-PD is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aegon Funding and F PD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F PD and Aegon Funding 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 Aegon Funding are associated (or correlated) with F PD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F PD has no effect on the direction of Aegon Funding i.e., Aegon Funding and F PD go up and down completely randomly.
Pair Corralation between Aegon Funding and F PD
Given the investment horizon of 90 days Aegon Funding is expected to generate 1.37 times less return on investment than F PD. In addition to that, Aegon Funding is 1.03 times more volatile than F PD. It trades about 0.03 of its total potential returns per unit of risk. F PD is currently generating about 0.05 per unit of volatility. If you would invest 2,168 in F PD on September 2, 2024 and sell it today you would earn a total of 312.00 from holding F PD or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon Funding vs. F PD
Performance |
| Timeline |
| Aegon Funding |
| F PD |
Aegon Funding and F PD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon Funding and F PD
The main advantage of trading using opposite Aegon Funding and F PD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon Funding position performs unexpectedly, F PD 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 F PD will offset losses from the drop in F PD's long position.| Aegon Funding vs. Stepan Company | Aegon Funding vs. Nomura Holdings ADR | Aegon Funding vs. Luxfer Holdings PLC | Aegon Funding vs. Alvarium Tiedemann Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |