Correlation Between Aegon NV and PostNL NV
Can any of the company-specific risk be diversified away by investing in both Aegon NV and PostNL NV 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 PostNL NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV and PostNL NV, you can compare the effects of market volatilities on Aegon NV and PostNL NV 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 PostNL NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and PostNL NV.
Diversification Opportunities for Aegon NV and PostNL NV
Pay attention - limited upside
The 3 months correlation between Aegon and PostNL is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV and PostNL NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostNL 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 PostNL NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostNL NV has no effect on the direction of Aegon NV i.e., Aegon NV and PostNL NV go up and down completely randomly.
Pair Corralation between Aegon NV and PostNL NV
Assuming the 90 days trading horizon Aegon NV is expected to generate 0.65 times more return on investment than PostNL NV. However, Aegon NV is 1.54 times less risky than PostNL NV. It trades about 0.0 of its potential returns per unit of risk. PostNL NV is currently generating about -0.12 per unit of risk. If you would invest 594.00 in Aegon NV on August 24, 2024 and sell it today you would lose (1.00) from holding Aegon NV or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegon NV vs. PostNL NV
Performance |
| Timeline |
| Aegon NV |
| PostNL NV |
Aegon NV and PostNL NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and PostNL NV
The main advantage of trading using opposite Aegon NV and PostNL NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV position performs unexpectedly, PostNL NV 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 PostNL NV will offset losses from the drop in PostNL NV'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 |
| PostNL NV vs. Koninklijke Ahold Delhaize | PostNL NV vs. Bpost NV | PostNL NV vs. Aegon NV | PostNL NV vs. Koninklijke KPN 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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