Correlation Between Aegon NV and Boxed

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Can any of the company-specific risk be diversified away by investing in both Aegon NV and Boxed 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 Boxed 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 Boxed Inc, you can compare the effects of market volatilities on Aegon NV and Boxed 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 Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Boxed.

Diversification Opportunities for Aegon NV and Boxed

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Aegon NV and Boxed

If you would invest  491.00  in Aegon NV ADR on September 1, 2024 and sell it today you would earn a total of  158.00  from holding Aegon NV ADR or generate 32.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Aegon NV ADR  vs.  Boxed Inc

 Performance 
       Timeline  
Aegon NV ADR 

Risk-Adjusted Performance

9 of 100

 
Weak
 
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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Aegon NV ADR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aegon NV may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Boxed Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Boxed Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Boxed is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Aegon NV and Boxed Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aegon NV and Boxed

The main advantage of trading using opposite Aegon NV and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.
The idea behind Aegon NV ADR and Boxed Inc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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