Correlation Between Aegon NV and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Maiden 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 Maiden 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 Maiden Holdings, you can compare the effects of market volatilities on Aegon NV and Maiden 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 Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Maiden Holdings.
Diversification Opportunities for Aegon NV and Maiden Holdings
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegon and Maiden is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden 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 Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Aegon NV i.e., Aegon NV and Maiden Holdings go up and down completely randomly.
Pair Corralation between Aegon NV and Maiden Holdings
Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the Maiden Holdings. In addition to that, Aegon NV is 1.12 times more volatile than Maiden Holdings. It trades about -0.06 of its total potential returns per unit of risk. Maiden Holdings is currently generating about 0.05 per unit of volatility. If you would invest 1,670 in Maiden Holdings on August 24, 2024 and sell it today you would earn a total of 23.00 from holding Maiden Holdings or generate 1.38% 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. Maiden Holdings
Performance |
| Timeline |
| Aegon NV ADR |
| Maiden Holdings |
Aegon NV and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Maiden Holdings
The main advantage of trading using opposite Aegon NV and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Maiden 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 Maiden Holdings will offset losses from the drop in Maiden 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 |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |