Correlation Between International General and Ageas SA/NV
Can any of the company-specific risk be diversified away by investing in both International General and Ageas SA/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 International General and Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International General Insurance and ageas SANV, you can compare the effects of market volatilities on International General and Ageas SA/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 International General with a short position of Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of International General and Ageas SA/NV.
Diversification Opportunities for International General and Ageas SA/NV
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Ageas is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding International General Insuranc and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and International General 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 International General Insurance are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of International General i.e., International General and Ageas SA/NV go up and down completely randomly.
Pair Corralation between International General and Ageas SA/NV
Given the investment horizon of 90 days International General Insurance is expected to generate 2.08 times more return on investment than Ageas SA/NV. However, International General is 2.08 times more volatile than ageas SANV. It trades about 0.28 of its potential returns per unit of risk. ageas SANV is currently generating about -0.09 per unit of risk. If you would invest 2,224 in International General Insurance on August 27, 2024 and sell it today you would earn a total of 364.00 from holding International General Insurance or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International General Insuranc vs. ageas SANV
Performance |
| Timeline |
| International General |
| Ageas SA/NV |
International General and Ageas SA/NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International General and Ageas SA/NV
The main advantage of trading using opposite International General and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International General position performs unexpectedly, Ageas SA/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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV vs. Zurich Insurance Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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