Correlation Between Ageas SANV and DIeteren Group
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and DIeteren Group 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 DIeteren Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and DIeteren Group SA, you can compare the effects of market volatilities on Ageas SANV and DIeteren Group 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 DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and DIeteren Group.
Diversification Opportunities for Ageas SANV and DIeteren Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ageas and DIeteren is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA 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 DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of Ageas SANV i.e., Ageas SANV and DIeteren Group go up and down completely randomly.
Pair Corralation between Ageas SANV and DIeteren Group
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.6 times more return on investment than DIeteren Group. However, ageas SANV is 1.65 times less risky than DIeteren Group. It trades about 0.06 of its potential returns per unit of risk. DIeteren Group SA is currently generating about 0.01 per unit of risk. If you would invest 4,461 in ageas SANV on September 1, 2024 and sell it today you would earn a total of 315.00 from holding ageas SANV or generate 7.06% 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. DIeteren Group SA
Performance |
| Timeline |
| ageas SANV |
| DIeteren Group SA |
Ageas SANV and DIeteren Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and DIeteren Group
The main advantage of trading using opposite Ageas SANV and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, DIeteren Group 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 DIeteren Group will offset losses from the drop in DIeteren Group's 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 |
| DIeteren Group vs. Ackermans Van Haaren | DIeteren Group vs. Sofina Socit Anonyme | DIeteren Group vs. Groep Brussel Lambert | DIeteren Group vs. Barco 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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