Correlation Between Aegon NV and BlackRock ESG
Can any of the company-specific risk be diversified away by investing in both Aegon NV and BlackRock ESG 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 BlackRock ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and BlackRock ESG Multi Asset, you can compare the effects of market volatilities on Aegon NV and BlackRock ESG 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 BlackRock ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and BlackRock ESG.
Diversification Opportunities for Aegon NV and BlackRock ESG
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aegon and BlackRock is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and BlackRock ESG Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock ESG Multi 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 BlackRock ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock ESG Multi has no effect on the direction of Aegon NV i.e., Aegon NV and BlackRock ESG go up and down completely randomly.
Pair Corralation between Aegon NV and BlackRock ESG
Assuming the 90 days trading horizon Aegon NV is expected to under-perform the BlackRock ESG. In addition to that, Aegon NV is 3.92 times more volatile than BlackRock ESG Multi Asset. It trades about -0.05 of its total potential returns per unit of risk. BlackRock ESG Multi Asset is currently generating about -0.1 per unit of volatility. If you would invest 624.00 in BlackRock ESG Multi Asset on November 28, 2024 and sell it today you would lose (8.00) from holding BlackRock ESG Multi Asset or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV vs. BlackRock ESG Multi Asset
Performance |
| Timeline |
| Aegon NV |
| BlackRock ESG Multi |
Aegon NV and BlackRock ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and BlackRock ESG
The main advantage of trading using opposite Aegon NV and BlackRock ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, BlackRock ESG 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 BlackRock ESG will offset losses from the drop in BlackRock ESG's 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 |
| BlackRock ESG vs. BlackRock ESG Multi Asset | BlackRock ESG vs. LG Russell 2000 | BlackRock ESG vs. iShares MSCI EM | BlackRock ESG vs. VanEck Multi Asset Growth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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