Correlation Between Aegon NV and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Meiwu Technology 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 Meiwu Technology 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 Meiwu Technology Co, you can compare the effects of market volatilities on Aegon NV and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Meiwu Technology.
Diversification Opportunities for Aegon NV and Meiwu Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aegon and Meiwu is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Aegon NV i.e., Aegon NV and Meiwu Technology go up and down completely randomly.
Pair Corralation between Aegon NV and Meiwu Technology
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.15 times more return on investment than Meiwu Technology. However, Aegon NV ADR is 6.69 times less risky than Meiwu Technology. It trades about 0.07 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.01 per unit of risk. If you would invest 476.00 in Aegon NV ADR on September 12, 2024 and sell it today you would earn a total of 160.50 from holding Aegon NV ADR or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV ADR vs. Meiwu Technology Co
Performance |
| Timeline |
| Aegon NV ADR |
| Meiwu Technology |
Aegon NV and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Meiwu Technology
The main advantage of trading using opposite Aegon NV and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology'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 |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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