Correlation Between Aegon NV and MoneyHero Limited
Can any of the company-specific risk be diversified away by investing in both Aegon NV and MoneyHero Limited 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 MoneyHero Limited 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 MoneyHero Limited Warrants, you can compare the effects of market volatilities on Aegon NV and MoneyHero Limited 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 MoneyHero Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and MoneyHero Limited.
Diversification Opportunities for Aegon NV and MoneyHero Limited
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegon and MoneyHero is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and MoneyHero Limited Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited 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 MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited has no effect on the direction of Aegon NV i.e., Aegon NV and MoneyHero Limited go up and down completely randomly.
Pair Corralation between Aegon NV and MoneyHero Limited
Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the MoneyHero Limited. But the stock apears to be less risky and, when comparing its historical volatility, Aegon NV ADR is 12.87 times less risky than MoneyHero Limited. The stock trades about -0.09 of its potential returns per unit of risk. The MoneyHero Limited Warrants is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4.60 in MoneyHero Limited Warrants on September 12, 2024 and sell it today you would lose (0.35) from holding MoneyHero Limited Warrants or give up 7.61% 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. MoneyHero Limited Warrants
Performance |
| Timeline |
| Aegon NV ADR |
| MoneyHero Limited |
Aegon NV and MoneyHero Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and MoneyHero Limited
The main advantage of trading using opposite Aegon NV and MoneyHero Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, MoneyHero Limited 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 MoneyHero Limited will offset losses from the drop in MoneyHero Limited'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 |
| MoneyHero Limited vs. Twilio Inc | MoneyHero Limited vs. Meta Platforms | MoneyHero Limited vs. Alphabet Inc Class C | MoneyHero Limited vs. Alphabet Inc Class A |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |