Correlation Between Axa Equitable and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Axa Equitable 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 Axa Equitable and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axa Equitable Holdings and Aegon NV ADR, you can compare the effects of market volatilities on Axa Equitable 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 Axa Equitable with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Aegon NV.
Diversification Opportunities for Axa Equitable and Aegon NV
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axa and Aegon is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings 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 Axa Equitable 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 Axa Equitable Holdings 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 Axa Equitable i.e., Axa Equitable and Aegon NV go up and down completely randomly.
Pair Corralation between Axa Equitable and Aegon NV
Considering the 90-day investment horizon Axa Equitable Holdings is expected to generate 1.29 times more return on investment than Aegon NV. However, Axa Equitable is 1.29 times more volatile than Aegon NV ADR. It trades about 0.07 of its potential returns per unit of risk. Aegon NV ADR is currently generating about 0.02 per unit of risk. If you would invest 3,993 in Axa Equitable Holdings on August 24, 2024 and sell it today you would earn a total of 687.00 from holding Axa Equitable Holdings or generate 17.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axa Equitable Holdings vs. Aegon NV ADR
Performance |
| Timeline |
| Axa Equitable Holdings |
| Aegon NV ADR |
Axa Equitable and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and Aegon NV
The main advantage of trading using opposite Axa Equitable and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable 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.| Axa Equitable vs. American International Group | Axa Equitable vs. Arch Capital Group | Axa Equitable vs. Old Republic International | Axa Equitable vs. Sun Life Financial |
| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Enstar Group Limited | Aegon NV vs. American International Group | Aegon NV vs. Axa Equitable Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |