Correlation Between Aegon NV and Interactive Brokers
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Interactive Brokers 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 Interactive Brokers 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 Interactive Brokers Group, you can compare the effects of market volatilities on Aegon NV and Interactive Brokers 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 Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Interactive Brokers.
Diversification Opportunities for Aegon NV and Interactive Brokers
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegon and Interactive is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers 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 Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of Aegon NV i.e., Aegon NV and Interactive Brokers go up and down completely randomly.
Pair Corralation between Aegon NV and Interactive Brokers
Considering the 90-day investment horizon Aegon NV is expected to generate 2.43 times less return on investment than Interactive Brokers. But when comparing it to its historical volatility, Aegon NV ADR is 1.14 times less risky than Interactive Brokers. It trades about 0.05 of its potential returns per unit of risk. Interactive Brokers Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,469 in Interactive Brokers Group on November 28, 2024 and sell it today you would earn a total of 11,625 from holding Interactive Brokers Group or generate 137.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Interactive Brokers Group
Performance |
| Timeline |
| Aegon NV ADR |
| Interactive Brokers |
Aegon NV and Interactive Brokers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Interactive Brokers
The main advantage of trading using opposite Aegon NV and Interactive Brokers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Interactive Brokers 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 Interactive Brokers will offset losses from the drop in Interactive Brokers' 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 |
| Interactive Brokers vs. Magna International | Interactive Brokers vs. City Office REIT | Interactive Brokers vs. Orion Office Reit | Interactive Brokers vs. Southern Home Medicl |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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