Correlation Between Aegon NV and Jde Peets
Can any of the company-specific risk be diversified away by investing in both Aegon NV and Jde Peets 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 Jde Peets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and Jde Peets Nv, you can compare the effects of market volatilities on Aegon NV and Jde Peets 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 Jde Peets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and Jde Peets.
Diversification Opportunities for Aegon NV and Jde Peets
Very good diversification
The 3 months correlation between Aegon and Jde is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and Jde Peets Nv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jde Peets Nv 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 Jde Peets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jde Peets Nv has no effect on the direction of Aegon NV i.e., Aegon NV and Jde Peets go up and down completely randomly.
Pair Corralation between Aegon NV and Jde Peets
Assuming the 90 days trading horizon Aegon NV is expected to generate 0.75 times more return on investment than Jde Peets. However, Aegon NV is 1.33 times less risky than Jde Peets. It trades about 0.09 of its potential returns per unit of risk. Jde Peets Nv is currently generating about -0.04 per unit of risk. If you would invest 404.00 in Aegon NV on September 12, 2024 and sell it today you would earn a total of 204.00 from holding Aegon NV or generate 50.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV vs. Jde Peets Nv
Performance |
| Timeline |
| Aegon NV |
| Jde Peets Nv |
Aegon NV and Jde Peets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and Jde Peets
The main advantage of trading using opposite Aegon NV and Jde Peets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, Jde Peets 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 Jde Peets will offset losses from the drop in Jde Peets' 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 |
| Jde Peets vs. Koninklijke Vopak NV | Jde Peets vs. Signify NV | Jde Peets vs. Koninklijke Ahold Delhaize | Jde Peets vs. NN Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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