Correlation Between Aegon NV and China Clean
Can any of the company-specific risk be diversified away by investing in both Aegon NV and China Clean 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 China Clean 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 China Clean Energy, you can compare the effects of market volatilities on Aegon NV and China Clean 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 China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and China Clean.
Diversification Opportunities for Aegon NV and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegon and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy 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 China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Aegon NV i.e., Aegon NV and China Clean go up and down completely randomly.
Pair Corralation between Aegon NV and China Clean
If you would invest 526.00 in Aegon NV ADR on September 2, 2024 and sell it today you would earn a total of 123.00 from holding Aegon NV ADR or generate 23.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aegon NV ADR vs. China Clean Energy
Performance |
| Timeline |
| Aegon NV ADR |
| China Clean Energy |
Aegon NV and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and China Clean
The main advantage of trading using opposite Aegon NV and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, China Clean 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 China Clean will offset losses from the drop in China Clean'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 |
| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. Air Products and | China Clean vs. Ecolab Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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