Correlation Between Exmar NV and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both Exmar NV and Ageas SANV 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 Exmar NV and Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exmar NV and ageas SANV, you can compare the effects of market volatilities on Exmar NV and Ageas SANV 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 Exmar NV with a short position of Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exmar NV and Ageas SANV.
Diversification Opportunities for Exmar NV and Ageas SANV
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exmar and Ageas is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Exmar NV and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and Exmar NV 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 Exmar NV are associated (or correlated) with Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of Exmar NV i.e., Exmar NV and Ageas SANV go up and down completely randomly.
Pair Corralation between Exmar NV and Ageas SANV
Assuming the 90 days trading horizon Exmar NV is expected to generate 2.55 times more return on investment than Ageas SANV. However, Exmar NV is 2.55 times more volatile than ageas SANV. It trades about 0.18 of its potential returns per unit of risk. ageas SANV is currently generating about -0.01 per unit of risk. If you would invest 771.00 in Exmar NV on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Exmar NV or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exmar NV vs. ageas SANV
Performance |
| Timeline |
| Exmar NV |
| ageas SANV |
Exmar NV and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exmar NV and Ageas SANV
The main advantage of trading using opposite Exmar NV and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exmar NV position performs unexpectedly, Ageas SANV 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 Ageas SANV will offset losses from the drop in Ageas SANV's long position.| Exmar NV vs. EVS Broadcast Equipment | Exmar NV vs. NV Bekaert SA | Exmar NV vs. Tessenderlo | Exmar NV vs. Melexis NV |
| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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