Correlation Between Ageas SANV and Jensen
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Jensen 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 Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Jensen Group, you can compare the effects of market volatilities on Ageas SANV and Jensen 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 Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Jensen.
Diversification Opportunities for Ageas SANV and Jensen
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ageas and Jensen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Jensen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Group 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 Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Group has no effect on the direction of Ageas SANV i.e., Ageas SANV and Jensen go up and down completely randomly.
Pair Corralation between Ageas SANV and Jensen
Assuming the 90 days trading horizon Ageas SANV is expected to generate 15.13 times less return on investment than Jensen. But when comparing it to its historical volatility, ageas SANV is 2.95 times less risky than Jensen. It trades about 0.01 of its potential returns per unit of risk. Jensen Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,180 in Jensen Group on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Jensen Group or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Jensen Group
Performance |
| Timeline |
| ageas SANV |
| Jensen Group |
Ageas SANV and Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Jensen
The main advantage of trading using opposite Ageas SANV and Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Jensen 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 Jensen will offset losses from the drop in Jensen'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 |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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