Correlation Between Aegon NV and US Global
Can any of the company-specific risk be diversified away by investing in both Aegon NV and US Global 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 US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and US Global Investors, you can compare the effects of market volatilities on Aegon NV and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and US Global.
Diversification Opportunities for Aegon NV and US Global
Excellent diversification
The 3 months correlation between Aegon and GROW is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Aegon NV i.e., Aegon NV and US Global go up and down completely randomly.
Pair Corralation between Aegon NV and US Global
If you would invest 618.00 in Aegon NV on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Aegon NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aegon NV vs. US Global Investors
Performance |
| Timeline |
| Aegon NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| US Global Investors |
Aegon NV and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and US Global
The main advantage of trading using opposite Aegon NV and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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