Correlation Between Ageas SANV and GIMV NV
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and GIMV 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 Ageas SANV and GIMV NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and GIMV NV, you can compare the effects of market volatilities on Ageas SANV and GIMV 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 Ageas SANV with a short position of GIMV NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and GIMV NV.
Diversification Opportunities for Ageas SANV and GIMV NV
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and GIMV is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and GIMV NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIMV NV 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 GIMV NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIMV NV has no effect on the direction of Ageas SANV i.e., Ageas SANV and GIMV NV go up and down completely randomly.
Pair Corralation between Ageas SANV and GIMV NV
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.6 times more return on investment than GIMV NV. However, ageas SANV is 1.68 times less risky than GIMV NV. It trades about 0.03 of its potential returns per unit of risk. GIMV NV is currently generating about -0.03 per unit of risk. If you would invest 4,808 in ageas SANV on August 24, 2024 and sell it today you would earn a total of 26.00 from holding ageas SANV or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. GIMV NV
Performance |
| Timeline |
| ageas SANV |
| GIMV NV |
Ageas SANV and GIMV NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and GIMV NV
The main advantage of trading using opposite Ageas SANV and GIMV NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, GIMV 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 GIMV NV will offset losses from the drop in GIMV NV'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 |
| GIMV NV vs. Groep Brussel Lambert | GIMV NV vs. Ackermans Van Haaren | GIMV NV vs. Sofina Socit Anonyme | GIMV NV vs. Brederode SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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