Correlation Between Aegon NV and Axa SA
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Axa SA 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 Axa SA 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 Axa SA ADR, you can compare the effects of market volatilities on Aegon NV and Axa SA 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 Axa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Axa SA.
Diversification Opportunities for Aegon NV and Axa SA
Excellent diversification
The 3 months correlation between Aegon and Axa is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Axa SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa SA ADR 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 Axa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa SA ADR has no effect on the direction of Aegon NV i.e., Aegon NV and Axa SA go up and down completely randomly.
Pair Corralation between Aegon NV and Axa SA
If you would invest 3,088 in Axa SA ADR on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Axa SA ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aegon NV ADR vs. Axa SA ADR
Performance |
| Timeline |
| Aegon NV ADR |
| Axa SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aegon NV and Axa SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Axa SA
The main advantage of trading using opposite Aegon NV and Axa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Axa SA 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 Axa SA will offset losses from the drop in Axa SA'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 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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