Correlation Between Aegon NV and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Cleantech Power 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 Cleantech Power 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 Cleantech Power Corp, you can compare the effects of market volatilities on Aegon NV and Cleantech Power 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 Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Cleantech Power.
Diversification Opportunities for Aegon NV and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegon and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp 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 Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of Aegon NV i.e., Aegon NV and Cleantech Power go up and down completely randomly.
Pair Corralation between Aegon NV and Cleantech Power
If you would invest 0.59 in Cleantech Power Corp on September 21, 2024 and sell it today you would earn a total of 0.00 from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Cleantech Power Corp
Performance |
| Timeline |
| Aegon NV ADR |
| Cleantech Power Corp |
Aegon NV and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Cleantech Power
The main advantage of trading using opposite Aegon NV and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Cleantech Power 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 Cleantech Power will offset losses from the drop in Cleantech Power'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 |
| Cleantech Power vs. Montauk Renewables | Cleantech Power vs. Sun Life Financial | Cleantech Power vs. Aegon NV ADR | Cleantech Power vs. Life Time 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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