Correlation Between Ageas SANV and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Cenergy Holdings 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 SANV and Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Cenergy Holdings SA, you can compare the effects of market volatilities on Ageas SANV and Cenergy Holdings 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 SANV with a short position of Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Cenergy Holdings.
Diversification Opportunities for Ageas SANV and Cenergy Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and Cenergy is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings and Ageas SANV 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 Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of Ageas SANV i.e., Ageas SANV and Cenergy Holdings go up and down completely randomly.
Pair Corralation between Ageas SANV and Cenergy Holdings
Assuming the 90 days trading horizon Ageas SANV is expected to generate 3.94 times less return on investment than Cenergy Holdings. But when comparing it to its historical volatility, ageas SANV is 2.41 times less risky than Cenergy Holdings. It trades about 0.05 of its potential returns per unit of risk. Cenergy Holdings SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 310.00 in Cenergy Holdings SA on August 29, 2024 and sell it today you would earn a total of 544.00 from holding Cenergy Holdings SA or generate 175.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Cenergy Holdings SA
Performance |
| Timeline |
| ageas SANV |
| Cenergy Holdings |
Ageas SANV and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Cenergy Holdings
The main advantage of trading using opposite Ageas SANV and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Cenergy Holdings 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
| Cenergy Holdings vs. NV Bekaert SA | Cenergy Holdings vs. AGFA Gevaert NV | Cenergy Holdings vs. ageas SANV | Cenergy Holdings vs. Exmar 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |