Correlation Between Brookfield Corp and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp 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 Brookfield Corp and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Aegon NV ADR, you can compare the effects of market volatilities on Brookfield Corp 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 Brookfield Corp with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Aegon NV.
Diversification Opportunities for Brookfield Corp and Aegon NV
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brookfield and Aegon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR and Brookfield Corp 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 Brookfield Corp 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 ADR has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Aegon NV go up and down completely randomly.
Pair Corralation between Brookfield Corp and Aegon NV
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 1.16 times more return on investment than Aegon NV. However, Brookfield Corp is 1.16 times more volatile than Aegon NV ADR. It trades about 0.13 of its potential returns per unit of risk. Aegon NV ADR is currently generating about 0.06 per unit of risk. If you would invest 3,508 in Brookfield Corp on August 26, 2024 and sell it today you would earn a total of 2,319 from holding Brookfield Corp or generate 66.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Aegon NV ADR
Performance |
| Timeline |
| Brookfield Corp |
| Aegon NV ADR |
Brookfield Corp and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Aegon NV
The main advantage of trading using opposite Brookfield Corp and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp 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.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |