Correlation Between Ageas SA/NV and BB Seguridade
Can any of the company-specific risk be diversified away by investing in both Ageas SA/NV and BB Seguridade 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 Ageas SA/NV and BB Seguridade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and BB Seguridade Participacoes, you can compare the effects of market volatilities on Ageas SA/NV and BB Seguridade 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 Ageas SA/NV with a short position of BB Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SA/NV and BB Seguridade.
Diversification Opportunities for Ageas SA/NV and BB Seguridade
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and BBSEY is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and BB Seguridade Participacoes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Seguridade Partic and Ageas SA/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 ageas SANV are associated (or correlated) with BB Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Seguridade Partic has no effect on the direction of Ageas SA/NV i.e., Ageas SA/NV and BB Seguridade go up and down completely randomly.
Pair Corralation between Ageas SA/NV and BB Seguridade
Assuming the 90 days horizon ageas SANV is expected to generate 1.0 times more return on investment than BB Seguridade. However, ageas SANV is 1.0 times less risky than BB Seguridade. It trades about -0.06 of its potential returns per unit of risk. BB Seguridade Participacoes is currently generating about -0.11 per unit of risk. If you would invest 5,179 in ageas SANV on August 24, 2024 and sell it today you would lose (94.00) from holding ageas SANV or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. BB Seguridade Participacoes
Performance |
| Timeline |
| Ageas SA/NV |
| BB Seguridade Partic |
Ageas SA/NV and BB Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SA/NV and BB Seguridade
The main advantage of trading using opposite Ageas SA/NV and BB Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SA/NV position performs unexpectedly, BB Seguridade 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 BB Seguridade will offset losses from the drop in BB Seguridade's long position.| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV vs. Zurich Insurance Group |
| BB Seguridade vs. Assicurazioni Generali SpA | BB Seguridade vs. Athene Holding | BB Seguridade vs. ageas SANV | BB Seguridade vs. Athene Holding |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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