Correlation Between Aegon NV and JV SPAC
Can any of the company-specific risk be diversified away by investing in both Aegon NV and JV SPAC 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 JV SPAC 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 JV SPAC Acquisition, you can compare the effects of market volatilities on Aegon NV and JV SPAC 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 JV SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and JV SPAC.
Diversification Opportunities for Aegon NV and JV SPAC
Very weak diversification
The 3 months correlation between Aegon and JVSA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and JV SPAC Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JV SPAC Acquisition 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 JV SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JV SPAC Acquisition has no effect on the direction of Aegon NV i.e., Aegon NV and JV SPAC go up and down completely randomly.
Pair Corralation between Aegon NV and JV SPAC
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 7.25 times more return on investment than JV SPAC. However, Aegon NV is 7.25 times more volatile than JV SPAC Acquisition. It trades about 0.08 of its potential returns per unit of risk. JV SPAC Acquisition is currently generating about 0.1 per unit of risk. If you would invest 436.00 in Aegon NV ADR on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Aegon NV ADR or generate 45.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 51.21% |
| Values | Daily Returns |
Aegon NV ADR vs. JV SPAC Acquisition
Performance |
| Timeline |
| Aegon NV ADR |
| JV SPAC Acquisition |
Aegon NV and JV SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and JV SPAC
The main advantage of trading using opposite Aegon NV and JV SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, JV SPAC 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 JV SPAC will offset losses from the drop in JV SPAC'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 |
| JV SPAC vs. Nike Inc | JV SPAC vs. Ark Restaurants Corp | JV SPAC vs. First Watch Restaurant | JV SPAC vs. Canada Goose Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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