Correlation Between Aegon NV and SIMON
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By analyzing existing cross correlation between Aegon NV ADR and SIMON PPTY GROUP, you can compare the effects of market volatilities on Aegon NV and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and SIMON.
Diversification Opportunities for Aegon NV and SIMON
Good diversification
The 3 months correlation between Aegon and SIMON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Aegon NV i.e., Aegon NV and SIMON go up and down completely randomly.
Pair Corralation between Aegon NV and SIMON
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 1.01 times more return on investment than SIMON. However, Aegon NV is 1.01 times more volatile than SIMON PPTY GROUP. It trades about 0.07 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about -0.16 per unit of risk. If you would invest 635.00 in Aegon NV ADR on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Aegon NV ADR or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Aegon NV ADR vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Aegon NV ADR |
| SIMON PPTY GROUP |
Aegon NV and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and SIMON
The main advantage of trading using opposite Aegon NV and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| Aegon NV vs. Global Indemnity PLC | Aegon NV vs. Erie Indemnity | Aegon NV vs. AMERISAFE | Aegon NV vs. Diamond Hill Investment |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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