Correlation Between Ageas SANV and Home Invest
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Home Invest 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 Home Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Home Invest Belgium, you can compare the effects of market volatilities on Ageas SANV and Home Invest 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 Home Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Home Invest.
Diversification Opportunities for Ageas SANV and Home Invest
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and Home is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Home Invest Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Invest Belgium 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 Home Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Invest Belgium has no effect on the direction of Ageas SANV i.e., Ageas SANV and Home Invest go up and down completely randomly.
Pair Corralation between Ageas SANV and Home Invest
Assuming the 90 days trading horizon ageas SANV is expected to under-perform the Home Invest. But the stock apears to be less risky and, when comparing its historical volatility, ageas SANV is 1.57 times less risky than Home Invest. The stock trades about -0.04 of its potential returns per unit of risk. The Home Invest Belgium is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,564 in Home Invest Belgium on September 18, 2024 and sell it today you would earn a total of 4.00 from holding Home Invest Belgium or generate 0.26% 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. Home Invest Belgium
Performance |
| Timeline |
| ageas SANV |
| Home Invest Belgium |
Ageas SANV and Home Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Home Invest
The main advantage of trading using opposite Ageas SANV and Home Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Home Invest 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 Home Invest will offset losses from the drop in Home Invest'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 |
| Home Invest vs. Cofinimmo SA | Home Invest vs. Care Property Invest | Home Invest vs. Aedifica | Home Invest vs. Montea CVA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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