Correlation Between Aegon NV and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Franklin Credit 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 Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and Franklin Credit Management, you can compare the effects of market volatilities on Aegon NV and Franklin Credit 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 Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Franklin Credit.
Diversification Opportunities for Aegon NV and Franklin Credit
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegon and Franklin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana 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 are associated (or correlated) with Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Aegon NV i.e., Aegon NV and Franklin Credit go up and down completely randomly.
Pair Corralation between Aegon NV and Franklin Credit
If you would invest 10.00 in Franklin Credit Management on September 5, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Credit Management or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aegon NV vs. Franklin Credit Management
Performance |
| Timeline |
| Aegon NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Credit Mana |
Aegon NV and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Franklin Credit
The main advantage of trading using opposite Aegon NV and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Aegon NV vs. CECO Environmental Corp | Aegon NV vs. Omni Health | Aegon NV vs. Sonida Senior Living | Aegon NV vs. Franklin Credit Management |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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