Correlation Between Aegon NV and Volcan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aegon NV ADR and Volcan Compania Minera, you can compare the effects of market volatilities on Aegon NV and Volcan 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 Volcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Volcan.
Diversification Opportunities for Aegon NV and Volcan
Modest diversification
The 3 months correlation between Aegon and Volcan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Volcan Compania Minera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcan Compania Minera 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 Volcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcan Compania Minera has no effect on the direction of Aegon NV i.e., Aegon NV and Volcan go up and down completely randomly.
Pair Corralation between Aegon NV and Volcan
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.48 times more return on investment than Volcan. However, Aegon NV ADR is 2.1 times less risky than Volcan. It trades about 0.05 of its potential returns per unit of risk. Volcan Compania Minera is currently generating about 0.01 per unit of risk. If you would invest 442.00 in Aegon NV ADR on September 3, 2024 and sell it today you would earn a total of 192.00 from holding Aegon NV ADR or generate 43.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.23% |
| Values | Daily Returns |
Aegon NV ADR vs. Volcan Compania Minera
Performance |
| Timeline |
| Aegon NV ADR |
| Volcan Compania Minera |
Aegon NV and Volcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Volcan
The main advantage of trading using opposite Aegon NV and Volcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Volcan 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 Volcan will offset losses from the drop in Volcan's long position.| Aegon NV vs. Global Indemnity PLC | Aegon NV vs. Erie Indemnity | Aegon NV vs. AMERISAFE | Aegon NV vs. Diamond Hill Investment |
| Volcan vs. Kulicke and Soffa | Volcan vs. MagnaChip Semiconductor | Volcan vs. Western Digital | Volcan vs. Valens |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |