Correlation Between Ageas SANV and Nextensa
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Nextensa 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 Nextensa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Nextensa NV, you can compare the effects of market volatilities on Ageas SANV and Nextensa 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 Nextensa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Nextensa.
Diversification Opportunities for Ageas SANV and Nextensa
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and Nextensa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Nextensa NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextensa 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 Nextensa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextensa NV has no effect on the direction of Ageas SANV i.e., Ageas SANV and Nextensa go up and down completely randomly.
Pair Corralation between Ageas SANV and Nextensa
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.73 times more return on investment than Nextensa. However, ageas SANV is 1.38 times less risky than Nextensa. It trades about 0.05 of its potential returns per unit of risk. Nextensa NV is currently generating about -0.39 per unit of risk. If you would invest 4,676 in ageas SANV on September 12, 2024 and sell it today you would earn a total of 44.00 from holding ageas SANV or generate 0.94% 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. Nextensa NV
Performance |
| Timeline |
| ageas SANV |
| Nextensa NV |
Ageas SANV and Nextensa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Nextensa
The main advantage of trading using opposite Ageas SANV and Nextensa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Nextensa 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 Nextensa will offset losses from the drop in Nextensa'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 |
| Nextensa vs. Exmar NV | Nextensa vs. Iep Invest | Nextensa vs. Unifiedpost Group SA | Nextensa 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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