Correlation Between Aegon NV and NORFOLK
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By analyzing existing cross correlation between Aegon NV ADR and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Aegon NV and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and NORFOLK.
Diversification Opportunities for Aegon NV and NORFOLK
Modest diversification
The 3 months correlation between Aegon and NORFOLK is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Aegon NV i.e., Aegon NV and NORFOLK go up and down completely randomly.
Pair Corralation between Aegon NV and NORFOLK
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 2.62 times more return on investment than NORFOLK. However, Aegon NV is 2.62 times more volatile than NORFOLK SOUTHN P. It trades about 0.03 of its potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about 0.02 per unit of risk. If you would invest 601.00 in Aegon NV ADR on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Aegon NV ADR or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.4% |
| Values | Daily Returns |
Aegon NV ADR vs. NORFOLK SOUTHN P
Performance |
| Timeline |
| Aegon NV ADR |
| NORFOLK SOUTHN P |
Aegon NV and NORFOLK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and NORFOLK
The main advantage of trading using opposite Aegon NV and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.| Aegon NV vs. Global Indemnity PLC | Aegon NV vs. Erie Indemnity | Aegon NV vs. AMERISAFE | Aegon NV vs. Diamond Hill Investment |
| NORFOLK vs. Ecolab Inc | NORFOLK vs. United Fire Group | NORFOLK vs. Employers Holdings | NORFOLK vs. QBE Insurance 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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