Correlation Between Aegon NV and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Zijin Mining 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 Zijin Mining 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 Zijin Mining Group, you can compare the effects of market volatilities on Aegon NV and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Zijin Mining.
Diversification Opportunities for Aegon NV and Zijin Mining
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegon and Zijin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Aegon NV i.e., Aegon NV and Zijin Mining go up and down completely randomly.
Pair Corralation between Aegon NV and Zijin Mining
Considering the 90-day investment horizon Aegon NV ADR is expected to generate 0.36 times more return on investment than Zijin Mining. However, Aegon NV ADR is 2.78 times less risky than Zijin Mining. It trades about 0.04 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.0 per unit of risk. If you would invest 611.00 in Aegon NV ADR on September 1, 2024 and sell it today you would earn a total of 38.00 from holding Aegon NV ADR or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Aegon NV ADR vs. Zijin Mining Group
Performance |
| Timeline |
| Aegon NV ADR |
| Zijin Mining Group |
Aegon NV and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Zijin Mining
The main advantage of trading using opposite Aegon NV and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining'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 |
| Zijin Mining vs. Aurion Resources | Zijin Mining vs. Rio2 Limited | Zijin Mining vs. Palamina Corp | Zijin Mining vs. BTU Metals 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |