Correlation Between Aegon NV and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on Aegon NV and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Perseus Mining.
Diversification Opportunities for Aegon NV and Perseus Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegon and Perseus is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Aegon NV i.e., Aegon NV and Perseus Mining go up and down completely randomly.
Pair Corralation between Aegon NV and Perseus Mining
Considering the 90-day investment horizon Aegon NV is expected to generate 2.34 times less return on investment than Perseus Mining. But when comparing it to its historical volatility, Aegon NV ADR is 2.13 times less risky than Perseus Mining. It trades about 0.04 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Perseus Mining Limited on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Perseus Mining Limited or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Perseus Mining Limited
Performance |
| Timeline |
| Aegon NV ADR |
| Perseus Mining |
Aegon NV and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Perseus Mining
The main advantage of trading using opposite Aegon NV and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining'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 |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Palamina Corp | Perseus Mining vs. BTU Metals Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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