Correlation Between AEON STORES and PageGroup Plc
Can any of the company-specific risk be diversified away by investing in both AEON STORES and PageGroup Plc 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 AEON STORES and PageGroup Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and PageGroup plc, you can compare the effects of market volatilities on AEON STORES and PageGroup Plc 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 AEON STORES with a short position of PageGroup Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and PageGroup Plc.
Diversification Opportunities for AEON STORES and PageGroup Plc
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AEON and PageGroup is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and PageGroup plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PageGroup plc and AEON STORES 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 AEON STORES are associated (or correlated) with PageGroup Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PageGroup plc has no effect on the direction of AEON STORES i.e., AEON STORES and PageGroup Plc go up and down completely randomly.
Pair Corralation between AEON STORES and PageGroup Plc
Assuming the 90 days trading horizon AEON STORES is expected to under-perform the PageGroup Plc. But the stock apears to be less risky and, when comparing its historical volatility, AEON STORES is 4.34 times less risky than PageGroup Plc. The stock trades about -0.22 of its potential returns per unit of risk. The PageGroup plc is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 456.00 in PageGroup plc on September 3, 2024 and sell it today you would lose (22.00) from holding PageGroup plc or give up 4.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. PageGroup plc
Performance |
| Timeline |
| AEON STORES |
| PageGroup plc |
AEON STORES and PageGroup Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and PageGroup Plc
The main advantage of trading using opposite AEON STORES and PageGroup Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, PageGroup Plc 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 PageGroup Plc will offset losses from the drop in PageGroup Plc's long position.| AEON STORES vs. TOTAL GABON | AEON STORES vs. Walgreens Boots Alliance | AEON STORES vs. Banco Santander SA | AEON STORES vs. Peak Resources Limited |
| PageGroup Plc vs. Games Workshop Group | PageGroup Plc vs. Scientific Games | PageGroup Plc vs. CI GAMES SA | PageGroup Plc vs. AEON STORES |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |