Correlation Between Aegon NV and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Amkor Technology 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 NV and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV ADR and Amkor Technology, you can compare the effects of market volatilities on Aegon NV and Amkor Technology 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 NV with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Amkor Technology.
Diversification Opportunities for Aegon NV and Amkor Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegon and Amkor is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Aegon 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 Aegon NV ADR are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Aegon NV i.e., Aegon NV and Amkor Technology go up and down completely randomly.
Pair Corralation between Aegon NV and Amkor Technology
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.56 times more return on investment than Amkor Technology. However, Aegon NV ADR is 1.77 times less risky than Amkor Technology. It trades about 0.05 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 432.00 in Aegon NV ADR on August 27, 2024 and sell it today you would earn a total of 191.00 from holding Aegon NV ADR or generate 44.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Amkor Technology
Performance |
| Timeline |
| Aegon NV ADR |
| Amkor Technology |
Aegon NV and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Amkor Technology
The main advantage of trading using opposite Aegon NV and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Stocks Directory module to find actively traded stocks across global markets.
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