Correlation Between Nextensa and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both Nextensa 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 Nextensa and Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextensa NV and ageas SANV, you can compare the effects of market volatilities on Nextensa 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 Nextensa with a short position of Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextensa and Ageas SANV.
Diversification Opportunities for Nextensa and Ageas SANV
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nextensa and Ageas is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nextensa NV and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV and Nextensa 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 Nextensa 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 Nextensa i.e., Nextensa and Ageas SANV go up and down completely randomly.
Pair Corralation between Nextensa and Ageas SANV
Assuming the 90 days trading horizon Nextensa NV is expected to under-perform the Ageas SANV. In addition to that, Nextensa is 1.38 times more volatile than ageas SANV. It trades about -0.39 of its total potential returns per unit of risk. ageas SANV is currently generating about 0.05 per unit of volatility. If you would invest 4,676 in ageas SANV on September 12, 2024 and sell it today you would earn a total of 44.00 from holding ageas SANV or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextensa NV vs. ageas SANV
Performance |
| Timeline |
| Nextensa NV |
| ageas SANV |
Nextensa and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextensa and Ageas SANV
The main advantage of trading using opposite Nextensa and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextensa 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.| Nextensa vs. Exmar NV | Nextensa vs. Iep Invest | Nextensa vs. Unifiedpost Group SA | Nextensa vs. Montea CVA |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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