Correlation Between Ageas SANV and Sequana Medical
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Sequana Medical 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 Sequana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Sequana Medical NV, you can compare the effects of market volatilities on Ageas SANV and Sequana Medical 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 Sequana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Sequana Medical.
Diversification Opportunities for Ageas SANV and Sequana Medical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageas and Sequana is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Sequana Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequana Medical 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 Sequana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequana Medical NV has no effect on the direction of Ageas SANV i.e., Ageas SANV and Sequana Medical go up and down completely randomly.
Pair Corralation between Ageas SANV and Sequana Medical
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.21 times more return on investment than Sequana Medical. However, ageas SANV is 4.79 times less risky than Sequana Medical. It trades about 0.06 of its potential returns per unit of risk. Sequana Medical NV is currently generating about -0.04 per unit of risk. If you would invest 3,608 in ageas SANV on August 26, 2024 and sell it today you would earn a total of 1,258 from holding ageas SANV or generate 34.87% 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. Sequana Medical NV
Performance |
| Timeline |
| ageas SANV |
| Sequana Medical NV |
Ageas SANV and Sequana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Sequana Medical
The main advantage of trading using opposite Ageas SANV and Sequana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Sequana Medical 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 Sequana Medical will offset losses from the drop in Sequana Medical'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 |
| Sequana Medical vs. Biocartis Group NV | Sequana Medical vs. Argen X | Sequana Medical vs. Oxurion NV | Sequana Medical vs. Exmar 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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