Correlation Between Aegon NV and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Futu 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 Futu 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 Futu Holdings Limited, you can compare the effects of market volatilities on Aegon NV and Futu 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 Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Futu Holdings.
Diversification Opportunities for Aegon NV and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegon and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited 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 Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Aegon NV i.e., Aegon NV and Futu Holdings go up and down completely randomly.
Pair Corralation between Aegon NV and Futu Holdings
If you would invest 458.00 in Aegon NV ADR on September 14, 2024 and sell it today you would earn a total of 174.00 from holding Aegon NV ADR or generate 37.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Futu Holdings Limited
Performance |
| Timeline |
| Aegon NV ADR |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aegon NV and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Futu Holdings
The main advantage of trading using opposite Aegon NV and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Futu 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 Futu Holdings will offset losses from the drop in Futu 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 |
| Futu Holdings vs. Scandinavian Tobacco Group | Futu Holdings vs. Aegon NV ADR | Futu Holdings vs. Japan Tobacco ADR | Futu Holdings vs. Boston Beer |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |