Correlation Between Aegon NV and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on Aegon NV and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Celsius Holdings.
Diversification Opportunities for Aegon NV and Celsius Holdings
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegon and Celsius is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Aegon NV i.e., Aegon NV and Celsius Holdings go up and down completely randomly.
Pair Corralation between Aegon NV and Celsius Holdings
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.5 times more return on investment than Celsius Holdings. However, Aegon NV ADR is 1.99 times less risky than Celsius Holdings. It trades about 0.08 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.13 per unit of risk. If you would invest 632.00 in Aegon NV ADR on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Aegon NV ADR or generate 2.69% 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. Celsius Holdings
Performance |
| Timeline |
| Aegon NV ADR |
| Celsius Holdings |
Aegon NV and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Celsius Holdings
The main advantage of trading using opposite Aegon NV and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' 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 |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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