Correlation Between Aegon NV and Koninklijke Heijmans
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Koninklijke Heijmans 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 Koninklijke Heijmans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and Koninklijke Heijmans NV, you can compare the effects of market volatilities on Aegon NV and Koninklijke Heijmans 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 Koninklijke Heijmans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Koninklijke Heijmans.
Diversification Opportunities for Aegon NV and Koninklijke Heijmans
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegon and Koninklijke is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and Koninklijke Heijmans NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Heijmans 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 Koninklijke Heijmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Heijmans has no effect on the direction of Aegon NV i.e., Aegon NV and Koninklijke Heijmans go up and down completely randomly.
Pair Corralation between Aegon NV and Koninklijke Heijmans
Assuming the 90 days trading horizon Aegon NV is expected to under-perform the Koninklijke Heijmans. But the stock apears to be less risky and, when comparing its historical volatility, Aegon NV is 2.53 times less risky than Koninklijke Heijmans. The stock trades about -0.01 of its potential returns per unit of risk. The Koninklijke Heijmans NV is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Koninklijke Heijmans NV on August 29, 2024 and sell it today you would earn a total of 220.00 from holding Koninklijke Heijmans NV or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV vs. Koninklijke Heijmans NV
Performance |
| Timeline |
| Aegon NV |
| Koninklijke Heijmans |
Aegon NV and Koninklijke Heijmans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Koninklijke Heijmans
The main advantage of trading using opposite Aegon NV and Koninklijke Heijmans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Koninklijke Heijmans 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 Koninklijke Heijmans will offset losses from the drop in Koninklijke Heijmans' long position.| Aegon NV vs. ING Groep NV | Aegon NV vs. Koninklijke KPN NV | Aegon NV vs. ABN Amro Group | Aegon NV vs. NN Group NV |
| Koninklijke Heijmans vs. Fugro NV | Koninklijke Heijmans vs. SBM Offshore NV | Koninklijke Heijmans vs. Aegon NV | Koninklijke Heijmans vs. PostNL NV |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |