Correlation Between Mapfre SA and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both Mapfre SA 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 Mapfre SA and Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapfre SA ADR and ageas SANV, you can compare the effects of market volatilities on Mapfre SA 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 Mapfre SA with a short position of Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapfre SA and Ageas SANV.
Diversification Opportunities for Mapfre SA and Ageas SANV
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mapfre and Ageas is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mapfre SA ADR and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and Mapfre SA 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 Mapfre SA ADR 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 Mapfre SA i.e., Mapfre SA and Ageas SANV go up and down completely randomly.
Pair Corralation between Mapfre SA and Ageas SANV
Assuming the 90 days horizon Mapfre SA ADR is expected to under-perform the Ageas SANV. In addition to that, Mapfre SA is 3.5 times more volatile than ageas SANV. It trades about -0.07 of its total potential returns per unit of risk. ageas SANV is currently generating about -0.17 per unit of volatility. If you would invest 5,174 in ageas SANV on September 19, 2024 and sell it today you would lose (208.00) from holding ageas SANV or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapfre SA ADR vs. ageas SANV
Performance |
| Timeline |
| Mapfre SA ADR |
| ageas SANV |
Mapfre SA and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapfre SA and Ageas SANV
The main advantage of trading using opposite Mapfre SA and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapfre SA 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.| Mapfre SA vs. ageas SANV | Mapfre SA vs. Enagas SA | Mapfre SA vs. Assicurazioni Generali SpA | Mapfre SA vs. Sampo OYJ |
| Ageas SANV vs. Assicurazioni Generali SpA | Ageas SANV vs. AXA SA | Ageas SANV vs. Sampo OYJ | Ageas SANV 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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