Correlation Between Aegon NV and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Jeld Wen 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 Jeld Wen 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 Jeld Wen Holding, you can compare the effects of market volatilities on Aegon NV and Jeld Wen 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 Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Jeld Wen.
Diversification Opportunities for Aegon NV and Jeld Wen
Very good diversification
The 3 months correlation between Aegon and Jeld is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Jeld Wen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeld Wen Holding 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 Jeld Wen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeld Wen Holding has no effect on the direction of Aegon NV i.e., Aegon NV and Jeld Wen go up and down completely randomly.
Pair Corralation between Aegon NV and Jeld Wen
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.47 times more return on investment than Jeld Wen. However, Aegon NV ADR is 2.15 times less risky than Jeld Wen. It trades about 0.05 of its potential returns per unit of risk. Jeld Wen Holding is currently generating about 0.02 per unit of risk. If you would invest 432.00 in Aegon NV ADR on August 27, 2024 and sell it today you would earn a total of 191.00 from holding Aegon NV ADR or generate 44.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Jeld Wen Holding
Performance |
| Timeline |
| Aegon NV ADR |
| Jeld Wen Holding |
Aegon NV and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Jeld Wen
The main advantage of trading using opposite Aegon NV and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Jeld Wen 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 Jeld Wen will offset losses from the drop in Jeld Wen'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 |
| Jeld Wen vs. Trex Company | Jeld Wen vs. Gibraltar Industries | Jeld Wen vs. Travis Perkins PLC | Jeld Wen vs. Janus International Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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