Correlation Between Getty Images and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Getty Images 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 Getty Images and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Images Holdings and Aegon NV ADR, you can compare the effects of market volatilities on Getty Images 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 Getty Images with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Images and Aegon NV.
Diversification Opportunities for Getty Images and Aegon NV
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Getty and Aegon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Getty Images 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 Getty Images 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 Getty Images 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 Getty Images i.e., Getty Images and Aegon NV go up and down completely randomly.
Pair Corralation between Getty Images and Aegon NV
Given the investment horizon of 90 days Getty Images Holdings is expected to under-perform the Aegon NV. In addition to that, Getty Images is 3.6 times more volatile than Aegon NV ADR. It trades about -0.23 of its total potential returns per unit of risk. Aegon NV ADR is currently generating about -0.03 per unit of volatility. If you would invest 637.00 in Aegon NV ADR on August 30, 2024 and sell it today you would lose (8.00) from holding Aegon NV ADR or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Images Holdings vs. Aegon NV ADR
Performance |
| Timeline |
| Getty Images Holdings |
| Aegon NV ADR |
Getty Images and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Images and Aegon NV
The main advantage of trading using opposite Getty Images and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Images 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.| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |