Correlation Between Academy Sports and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Academy Sports and Aegon 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 Academy Sports and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Aegon NV PERP, you can compare the effects of market volatilities on Academy Sports and Aegon 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 Academy Sports with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Aegon NV.
Diversification Opportunities for Academy Sports and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Academy and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Aegon NV PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV PERP and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV PERP has no effect on the direction of Academy Sports i.e., Academy Sports and Aegon NV go up and down completely randomly.
Pair Corralation between Academy Sports and Aegon NV
If you would invest 4,783 in Academy Sports Outdoors on September 14, 2024 and sell it today you would earn a total of 650.00 from holding Academy Sports Outdoors or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Aegon NV PERP
Performance |
| Timeline |
| Academy Sports Outdoors |
| Aegon NV PERP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Academy Sports and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Aegon NV
The main advantage of trading using opposite Academy Sports and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports position performs unexpectedly, Aegon 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Academy Sports vs. High Tide | Academy Sports vs. China Jo Jo Drugstores | Academy Sports vs. Walgreens Boots Alliance | Academy Sports vs. 111 Inc |
| Aegon NV vs. Life Time Group | Aegon NV vs. Academy Sports Outdoors | Aegon NV vs. MGIC Investment Corp | Aegon NV vs. Emerson Radio |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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