Correlation Between Aegon NV and Getty Images
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Aegon NV and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Getty Images.
Diversification Opportunities for Aegon NV and Getty Images
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aegon and Getty is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Aegon NV i.e., Aegon NV and Getty Images go up and down completely randomly.
Pair Corralation between Aegon NV and Getty Images
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.28 times more return on investment than Getty Images. However, Aegon NV ADR is 3.6 times less risky than Getty Images. It trades about -0.03 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.23 per unit of risk. If you would invest 637.00 in Aegon NV ADR on August 30, 2024 and sell it today you would lose (8.00) from holding Aegon NV ADR or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Getty Images Holdings
Performance |
| Timeline |
| Aegon NV ADR |
| Getty Images Holdings |
Aegon NV and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Getty Images
The main advantage of trading using opposite Aegon NV and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' 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 |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |