Correlation Between EcoGraf and Aegon NV
Can any of the company-specific risk be diversified away by investing in both EcoGraf 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 EcoGraf and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EcoGraf Limited and Aegon NV ADR, you can compare the effects of market volatilities on EcoGraf 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 EcoGraf with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of EcoGraf and Aegon NV.
Diversification Opportunities for EcoGraf and Aegon NV
Pay attention - limited upside
The 3 months correlation between EcoGraf and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EcoGraf Limited 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 EcoGraf 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 EcoGraf Limited 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 EcoGraf i.e., EcoGraf and Aegon NV go up and down completely randomly.
Pair Corralation between EcoGraf and Aegon NV
If you would invest 0.12 in EcoGraf Limited on September 13, 2024 and sell it today you would earn a total of 0.00 from holding EcoGraf Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EcoGraf Limited vs. Aegon NV ADR
Performance |
| Timeline |
| EcoGraf Limited |
| Aegon NV ADR |
EcoGraf and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EcoGraf and Aegon NV
The main advantage of trading using opposite EcoGraf and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EcoGraf 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.| EcoGraf vs. Qubec Nickel Corp | EcoGraf vs. IGO Limited | EcoGraf vs. Focus Graphite | EcoGraf vs. Mineral Res |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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