Correlation Between China Clean and Aegon NV
Can any of the company-specific risk be diversified away by investing in both China Clean 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 China Clean and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Aegon NV ADR, you can compare the effects of market volatilities on China Clean 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 China Clean with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Aegon NV.
Diversification Opportunities for China Clean and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy 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 China Clean 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 China Clean Energy 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 China Clean i.e., China Clean and Aegon NV go up and down completely randomly.
Pair Corralation between China Clean and Aegon NV
If you would invest 526.00 in Aegon NV ADR on September 2, 2024 and sell it today you would earn a total of 123.00 from holding Aegon NV ADR or generate 23.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
China Clean Energy vs. Aegon NV ADR
Performance |
| Timeline |
| China Clean Energy |
| Aegon NV ADR |
China Clean and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Aegon NV
The main advantage of trading using opposite China Clean and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean 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.| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. Air Products and | China Clean vs. Ecolab Inc |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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