Correlation Between Aegon NV and 29364WBL1
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By analyzing existing cross correlation between Aegon NV ADR and ETR 475 15 SEP 52, you can compare the effects of market volatilities on Aegon NV and 29364WBL1 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 29364WBL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and 29364WBL1.
Diversification Opportunities for Aegon NV and 29364WBL1
Very good diversification
The 3 months correlation between Aegon and 29364WBL1 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and ETR 475 15 SEP 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETR 475 15 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 29364WBL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETR 475 15 has no effect on the direction of Aegon NV i.e., Aegon NV and 29364WBL1 go up and down completely randomly.
Pair Corralation between Aegon NV and 29364WBL1
Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the 29364WBL1. But the stock apears to be less risky and, when comparing its historical volatility, Aegon NV ADR is 1.36 times less risky than 29364WBL1. The stock trades about -0.1 of its potential returns per unit of risk. The ETR 475 15 SEP 52 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,882 in ETR 475 15 SEP 52 on September 12, 2024 and sell it today you would earn a total of 284.00 from holding ETR 475 15 SEP 52 or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Aegon NV ADR vs. ETR 475 15 SEP 52
Performance |
| Timeline |
| Aegon NV ADR |
| ETR 475 15 |
Aegon NV and 29364WBL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and 29364WBL1
The main advantage of trading using opposite Aegon NV and 29364WBL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, 29364WBL1 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 29364WBL1 will offset losses from the drop in 29364WBL1'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 |
| 29364WBL1 vs. Guangdong Investment Limited | 29364WBL1 vs. Western Asset Investment | 29364WBL1 vs. Hawkins | 29364WBL1 vs. Eastman Chemical |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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